Did you know that a general home insurance policy does not protect you from storms and other natural disasters? What should you do? If you live in an area where floods are frequent or the region often witnesses heavy rainfall, you should buy flood coverage and other extra policies that are usually not included in your home insurance policy.
The annual rates of flood coverage policies start from $200 and can go up to $2,000 a year depending on the risks of floods in your area. Many people who live in coastal areas assume they do not need any extra insurance, but that is not true. Severe floods can cause extensive damage, and it is always a good idea to get protection.
When the rains are too heavy, your sewer system may clog and your home might suffer from damage. Repair costs for this are often high, particularly if a musty odor starts lingering in your home. Just as with flood insurance, this will not be included in your homeowner’s insurance policy. You can get coverage for this for around $50 to $75. The maximum coverage limit will usually be set at $20,000.
Damage from Trees
Got too many trees around your home? Old trees are often prone to falling down when there are winds and heavy rains. What if this tree hits your garage, car or the house itself? Yes, the repair costs are high, but luckily you do not need any extra protection and your home insurance policy will cover you.
What if your neighbor’s tree falls on your house? In that case, the neighbor’s insurance policy should cover the damage. You will have to contact your own insurance provider and they will take care of the rest.
In some cases, if the tree falls because of your negligence, you may not be provided with coverage.
And what if you are not covered?
If your insurance provider does not protect you and you have to pay some or all of the costs yourself, you will still get a tax advantage. Itemize these expenses and you can deduct them when you file your taxes. Obviously, the entire amount is not deductible, but something is better than nothing.