Isabel and insurance

[javasaurus]

Some of you may know this, others may not, but as Isabel approaches the DC/Baltimore/Annapolis area, take note!

Many homeowners insurance policies cover wind damage, but not flooding. In my policy, if water comes in through the basement, I'm not covered. Unless you live in a flood plain, you probably cannot get such insurance. If my house is flooded due to pipes breaking, sewer backup, or rain through the roof, I'm probably OK.

With regards to wind damage, many insurance companies discriminate between "wind" and "hurricane." According to this newsday article, Allstate calls it a hurricane if wind speed is over 100mph, and State Farm calls it a hurricane if wind speed is over 74mph. You will still be covered, but at a higher deductible than normal wind damage. Hurricane deductibles are normally between 2 and 5% of your homes replacement cost (not the total property value). In this area, that means your deductible on a $200,000 home with replacement value of $150,000 could be more than $5000.

So check out your policies before the storm hits!

Comments

[cozit.livejournal.com]

Generally speaking... doesn't do you much good to check it out now for *this* storm. Most require at least 30 days (I think that's what the news story said) before flood insurance is valid, from when it's purchased... basically to protect the insurance companies from lots of folks not buying until right before a known big storm shows up.

[javasaurus.livejournal.com]

Yep, that's true. Ya can't make changes before Isabel gets here. But it's still good to know what your policy says, so when yer roof goes sailing off to Oz, ya know how much those ruby slippers are going to cost!

Still, tis a good point ya make. Thanks!