Tuesday, January 08, 2008

Do You Have Adequate Coverage If A Flood Strikes?

By John Paige

You have been regularly paying your flood insurance policy premiums and you are at ease with the knowledge that in case of emergencies like flooding, you have cover for your house and the contents. But are your home and contents properly insured? Relaxing in the thought that you have flood insurance coverage, are you safe from the possibility that you may have underestimated the true value of your property? Can you sleep well at nights assured that you have upgraded your policy as you acquired or added more valuables to your original inventory?

It is never easy to deal when a disaster such as a flood strikes, but when you realize that you were under insured,it becomes almost impossible to handle. When you are already faced with such a devastating loss, it is a horrid blow to find out that you are losing thousands of pounds due to insufficient coverage. This thought should encourage you as a policyholder to make absolutely certain that you have enough coverage in the event that a disaster unexpectedly strikes your home.

It is important to make sure your insurance coverage is adequate, and there is no better time to do it than now, before disaster strikes. Also, if there are frequent or occasional land slides or shifts, or your area is prone to flooding, it is crucial that you inform your insurance provider of this, as failing to do so could result in the denial of your claim in the event of a flood.

Remember to update your buildings insurance policy if you have added home improvements at any time so that if you make a claim, it will be included. The same applies to contents cover. If you have purchased additional things or valuable goods, update your insurance cover.

Do you have a new-for-old cover? This means your flood insurance policy provider will pay out to replace the lost or damaged item. You should check your policy because some insurance providers have a time frame or limit about how long a specific item had been in your possession.

Another important thing on your checklist is to inform your flood insurance provider if you have any valuables like works of art, paintings or other expensive goods which you want to be included in your flood insurance policy. Do not hesitate to pay a higher premium or get a separate policy for expensive items. Calamities like floods may occur any time and you will not relish the thought of seeing your valuables without insurance damaged beyond repair.

If purchasing a house from the previous owner, be sure to inquire about the current flood zone insurance provider and policy. This will inform you about any difficulties in getting a policy and will keep you from finding out problems with obtaining coverage further down the road.

Finally, you should seek advice from your flood zone insurance provider, especially if you live in a high risk flood area. Although your location could limit your coverage options for both your home and the contents, your provider should still be able to offer you plenty of good advice. Secure in the knowledge that all of your concerns have been addressed and that you have adequate coverage, you will be able to rest at ease, knowing that if disaster strikes, you will be protected.

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