Hurricane Sandy hit the East Coast yesterday bringing tidal surges, high winds, rain, and even snow to much of the Northeast. For homeowners, that means floods, power outages, splintered trees and structural damage.
Read: Fannie, Freddie offer mortgage relief to Hurricane Sandy’s victims
Below is a post by Jonathan Slappey, first appearing on our partner site Quicken/Zing:
In the event of an environmental disaster or an accident on your property, homeowners insurance is a safety net that can protect your finances from potential depletion.
While homeowners insurance typically includes liability coverage and property insurance, damages to your home due to floods, war or termites are usually not covered with standard policies.
As we near the most active part of the Atlantic hurricane season, homeowners in coastal areas should take a closer look at their insurance coverage. Unlike traditional homeowners insurance, the windstorm or hurricane part of a policy carries a higher deductible that can be as much as 5 percent of the home’s value. Having the right insurance in place, and the funds to cover the deductible, can make a world of difference in recovering from a storm.
When you’re considering how much home insurance is adequate to cover your home, is it best to consider how much your home is worth or how much it would cost to replace? The experts at Insure.com say it’s absolutely the latter.
Given the state of home prices in this country, the costs to rebuild your home can far outweigh what your home might sell for on the current market.
HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.
