| With record amounts of rain in many parts of | | | | damage you sustain isn't covered. That's why |
| the nation this year, the topic of flood | | | | it's important to have a separate policy so |
| insurance has gained a lot of attention. | | | | there won't be any doubt as to your coverage. |
| Flooding occurred in areas where it hadn't | | | | |
| before, or at least not in decades. Not every | | | | Statistics from the Federal Emergency |
| homeowner has flood insurance and the worst | | | | Management Agency state that 25% of all flood |
| time to realize that you should have it is | | | | damage and claims occur in areas of the |
| after your condo, townhome or single family | | | | country classified as low to moderate risk. |
| house has sustained water damage. Flooding | | | | It's possible that your mortgage holder or |
| can not only destroy your material | | | | bank won't require you to have flood |
| possessions but also do major structural | | | | insurance unless you are in a high risk area. |
| damage that could cost thousands of dollars | | | | But you can purchase flood insurance from the |
| to repair. So even if you think there is | | | | National Flood Insurance Program. That policy |
| little chance of flooding where you live, the | | | | will cover the cost of rebuilding your condo |
| cost of an insurance premium is cheaper than | | | | or home and replacing the contents that were |
| replacing home furnishings or repair costs. | | | | damaged or lost. |
| | | | |
| Chicago real estate can be susceptible to | | | | The federally backed insurance will usually |
| flooding from several different ways. Even if | | | | only max out at the policy limit and not |
| you live in a new construction condo such as | | | | account for increased construction costs due |
| those listed here you could possibly | | | | to inflation or any other unforeseen expense. |
| experience flooding. Excavation nearby might | | | | The FEMA insurance will allow up to $250,000 |
| change the normal drainage of the area and | | | | for the structure and another $100,000 for |
| cause rain water to run off into your | | | | the contents. If you think you will need |
| property. Nearby construction could cause | | | | more, you'll have to buy additional coverage |
| surface flooding during storms or from heavy | | | | from a private insurance company. Your rates |
| snow melt in spring. The unexpected main | | | | will largely depend upon the level of flood |
| water line could burst and leak into your | | | | risk in your area. Actual coverage generally |
| unit. And in older structures you may | | | | won't start until 30 days after you purchase |
| discover that your building's roof is poor | | | | the policy, so waiting until a flood warning |
| construction or in need of repair or that the | | | | is issued will be too late. Even if you rent |
| basement storage area leaks after a heavy | | | | you are still eligible for content coverage. |
| rain. Your condo association fees may already | | | | And unlike car or health insurance, the quote |
| cover flooding, but you should carefully | | | | you get for flood insurance for your specific |
| check to be sure. | | | | condo or home and location should be the same |
| | | | no matter from whom you purchase it. |
| Your basic home insurance policy does not | | | | |
| cover flood related damage. Individual | | | | So unless you live in the desert or on a |
| companies and policies will vary of course, | | | | house boat, you may want to seriously |
| so you need to read yours thoroughly. Many | | | | consider checking into flood insurance for |
| condo and home insurance policies will state | | | | your condo, town home, single family |
| that water damage is covered only if wind or | | | | residence and the contents. Don't let your |
| fire damage occurs first to let the water in. | | | | life, dreams and bank account get washed |
| There are insurance companies who may go to | | | | away. Flood insurance may be the life jacket |
| great lengths to try and prove that water | | | | you need to survive. |