Protected house: how does flood insurance work?


Having your home protected by insurance can prevent you from having a greater loss when something happens to your property, as well as the goods and people inside it. In Pak, one of the situations that have been considered in this type of coverage is flood insurance.

Heavy rains at certain times of the year can wreak havoc and put the lives of special people at risk. Therefore, insurance for the protected home ensures support in case of unexpected events.

In this article you will understand how residential insurance works and what flood coverage is like. Check out!

Residential insurance x Protected house

You must have heard about residential insurance and, when searching the internet, did you find the term “protected home”? In fact, both talk about the same product, which is insurance for houses and apartments for vacation or vacation rentals.

The difference is that residential insurance is the category of this type of coverage for damage to real estate, property and people related to it. Already the protected house can be one of the names of the product offered by insurers.

More important than the term used is that you understand exactly what your property needs are. This is what we will detail below:

Home insurance: what is it?

In residential insurance, you pay a recurring amount to a company, which will indemnify you in case of damage caused by any eventuality. To access this guarantee, you need to define in which situations you want to pay to protect yourself.

Anyone who has never taken out residential insurance before and has already suffered some damage knows how much it weighs on their pockets. The case of an oscillation in the electrical network, which burns out electronic devices, or even a tree falling that damages the roof, can generate expenses that are much greater than paying for the protected house.

In the event of an accident, which is when damage provided for in the insurance occurs, you must pay part of the damage and the insurer pays the rest. This part of the insured person is called deductible and may be charged depending on the contract and the level of damage.

That's why in insurance, even if you pay a sum to recover from some damage, you won't have to pay the full amount. The home insurance contract is usually for one year and the coverage starts to be valid from the day after the proposal is approved or after the first payment.

Home insurance: what does it cover?

When taking out home insurance, there are risks covered and risks excluded. In a practical way, it is nothing more than the relationship of the risks that your insurance covers and what is not part of it. It sounds simple, but the difference in some terms can prevent you from receiving compensation for the damage.

The main risks covered by home insurance are:

- Fire ;
- Lightning strike;
- gas explosion;
- Electrical damage;
- Natural disasters, such as flood, windstorm, hurricane, cyclone and hail;
- landslide;
- Robbery and theft;
- Payment of rent in case of damage to the property;
- Impact of vehicles next to the property;
- Aircraft crash;
- Civil liability, which indemnifies other people, such as neighbors, service providers and visitors against incidents involving the owner, a family member and even a pet in the area of ​​the property.

What does insurance not cover?

Remember when we talked about excluded risks? Well, in every contract the company must list the types of events that are out of coverage . It is necessary to be specific in this way because, sometimes, even if damage is covered by insurance, not all consequences will be compensated.

A residential insurance that covers property theft, for example, may exclude theft without trace of burglary as an excluded risk. That is, if the event happens under these conditions, without trace, you do not receive compensation. Now, if traces of break-in were found, there will be an accident.

In the case of property collapse, insurance does not cover this event when it is caused by construction failures or pre-existing problems.

In addition, goods such as precious stones, works of art, jewelry, plants, manuscripts and collections of rare items are not compensated, even if the reason that led to the loss or damage forms part of the main coverage.

Additional coverage and services

Some of the coverages listed above can be considered as additional insurance. This means that you must contract separately in order to guarantee your home protected against any eventuality.

In cases of flooding, for example, it has coverage that guarantees compensation in the event of flooding, but not flooding. It may seem like it's the same situation, but it's not. Therefore, we brought the differences and details about it further on.

Other examples of coverage and additional services are:

- Plumbing rupture in the property or neighboring properties;
- Accidental death and total permanent disability by accident;
- Repair of appliances and electronics;
- Insurance for high-value items, such as works of art, metals and rare collections;
- Residential services, which guarantee a number of calls per year, such as: electrician, locksmith, plumber, glazier, house cleaning, security guard, moving and storage of furniture, temporary roofing, temporary domestic services, lodging and babysitting.

Before taking out flood insurance, it is necessary to understand the differences between flood, inundation and flooding.

Do you have flood insurance?

Yes, there is flood insurance, but you need to be very clear about the type of occurrence you are trying to protect yourself from. For the world of insurance, the difference between flooding, inundation and flooding determines what goes and doesn't go into your policy . Let's explain each of the terms:

Flood: It refers only to the rise in the level of a river. Although it is used with some frequency, the flood does not meet the cases of overflow and flooding.

Inundation: It happens when the river or lake rises in level to the point of invading the roads and surrounding areas. The flow of the river floods streets, avenues and properties close to where it passes. This is what can be seen in large cities after intense summer rains, when a lot of water falls at once and the river area does not support this increase, flooding the surroundings.

Flooding: It can happen as a result of flooding, which leaves streets and houses flooded. But a region that doesn't have a river nearby can also suffer from flooding. With heavy rains, for example, paved regions where water flow is less, there may be flooding. In big cities, rains can flood the underground garage of some buildings.

How do I know if insurance covers flooding?

The price of insurance for a property in an area that has flooding, inundation or flooding will be much higher than in a point where there is no such event. Therefore, natural disasters caused by rain may not form part of the basic coverage, only additional coverage.

Insurers take into account unexpected events such as lightning, fire, etc. There are coverages that guarantee, for example, compensation in case of flooding and flooding due to a pipe or dam rupture. They are not natural disasters, but they are rarer to happen.

As we've said before, the key point is to get all the information out of the insurer when you do your research.

Reading your policy carefully is the best way to understand home insurance and what it covers.

What insurance covers natural disasters?

Several insurances can cover natural disasters. Residential and vehicle insurance have this type of coverage, as both are exposed to this type of risk.

The main natural disasters that are part of home insurance are:

- Lightning , which can affect the structure of the house, its residents and assets;
- Windstorm and hail , which can roof houses and compromise structures;
- Hurricane, tornado and cyclone , which can bring down entire houses or be partially destroyed;
- Flooding, inundation and flooding , which can burn electrical and electronic devices, in addition to damaging furniture and objects and spoiling food.

When looking for home insurance, check what disasters can occur in your region, even if they are rare. Evaluate which companies they are part of the main coverage or if they are additional services.

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