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Some perils are not covered by a standard homeowners policy. Among them are flood,
earthquake, sinkhole, landslide and sometimes windstorm coverage, if you live in
a high-risk coastal region.
Coverage for these perils usually can be purchased through endorsements or
separate policies. Here are some examples of coverages that can be bought separately.
Flood Insurance
If you have a federally backed mortgage and live in a high-risk location
you are required to carry flood insurance. However, you might want to consider
buying flood insurance no matter where you live, since flooding can occur quickly
in the event of melting snow or in heavy rainfall.
Many individuals think the federal government will take care of their loss
if they are in a flood. Federal disaster assistance only takes effect if the
president formally declares a disaster. The assistance consists of low-interest
loans that must be repaid. And in many cases, the government requires you to
purchase flood insurance.
Many insurance companies have an agreement with the National Flood Insurance
Program (NFIP). Two types of policies are offered.
Standard Policy:For communities with stringent flood controls, the
program offers up to $250,000 of insurance for your home and up to $100,000
coverage for its contents.
Preferred Risk Policy: Designed for homeowners in moderate to low-risk
locations, coverage ranges from $20,000 to $250,000 for your home and $8,000 to
$100,000 for contents, at reduced rates.
For more information on flood insurance, contact your insurer or FEMA at
www.fema.gov or (800) 427-4661.
Mold Coverage
Some policies include limited mold coverage that is caused by specific perils.
To avoid confusion, many insurers are inserting language into their homeowners
policies to clarify if or when mold is covered. You may be able to purchase extra
mold coverage separately, if necessary.
Earthquake Coverage
Earthquake coverage provides financial protection from the shaking and cracking
that can destroy buildings and possessions. However, damage caused by resulting
fires or explosion is covered under homeowners policies.
Earthquake coverage can be purchased through private insurers, or if you live
in California you can buy a policy from the California Earthquake Authority (CEA)
through a licensed company authorized to sell CEA insurance.
For more information on earthquake insurance, contact your insurer.
Information about earthquake coverage in California is available online at
www.insurance.ca.gov or by phone at
(800) 927-4357 (calling from within California).
Windstorm, Hurricane And Tornado Coverage
Homeowners policies generally cover damage caused by windstorms, including
hurricanes and tornadoes — unless you live in an especially high-risk coastal
location prone to hurricanes. Because of the higher-than-average risk of damage,
you might be required to buy a separate windstorm policy through a state-run
insurance “pool.” A storm surge, primarily caused by high winds pushing on the
ocean’s surface, is not covered unless you have flood insurance.
In-Home Business And Computer Coverage
Homeowners policies generally provide only a limited amount of coverage for
business equipment, such as computers, printers and fax machines.
If your office equipment is valued at more than your policy limit, you may
want to consider buying an endorsement or rider to increase coverage, or a
separate business policy.
If you have employees, you may want to consider worker’s compensation and
health insurance. If you receive business visitors or accept frequent deliveries
at your home you may want additional liability coverage.
Disaster Mortgage Protection
If your home becomes uninhabitable due to a covered loss, disaster mortgage
protection pays your monthly mortgage payments while your home is being repaired
or rebuilt.
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