Severe Weather in the Northeast

The current flooding in the Northeast US is another reason why you need to have the right insurance coverage on your home. After all, who wants to be left with a mortgage and no home to show for it?

The challenge is to have the right coverage. Did you realize that many of the places which are suffering flooding haven't had even a quarter of an inch of rain of their own? They are being flooded from the run-off from storms miles away, which are swelling rivers to record levels.

Unfortunately, your regular "garden variety" homeowners insurance policy will never protect you from things like flood, earthquake, wild fire, mud slide, or other "perils" which are deemed by insurance companies to require "special" protection. You really need to check your insurance policy to be sure what coverage is included, and then be sure that you get any additional coverage that you think you need.

While it's a pain in the butt to have to buy additional insurance coverage separately, the good news is that your risk will be assessed based on your unique location. You won't be paying a "blanket" premium which is designed to cover a huge number of homes just like yours. If your level of risk for flood is fairly low, you should be able to get this coverage much more economically than your neighbor down the road who lives in the flood plain of the local river. While not a great deal of comfort, there are some advantages to these coverages being separate. (Mind you; the insurance companies do tend to make more when they split these endorsements and special riders up, so that you pay for each separately.)

Which reminds me -- I have to check our house insurance too. It makes me think that we've likely just got the basic coverage, and I might want to get some endorsements for special hazards myself.

Michael

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