Tehama Country Real Estate

Tehama Country Real Estate – 3 Real Estate Spotlight By Alex Mason uying flood insurance is safe and sound way to protect your home. In some property sales, the flood insurance will be mandatory if the home is located in a high-risk area. The cost of the flood insurance premium will be determined by the measure of protection you wish to purchase. This type of insurance is the most prevalent form of home insurance and one every home buyer should seek cover- age on. B and so forth can remain protected off the property until you are fully insured. Renter Insurance Renters may also protect their valuables with a low-cost flood insurance policy for tenants. This type of policy is generally divided into low- and high-risk policies. Causes of Water Damage Your home need not be situated by a river or in a high-water flood zone to be subject to the devastation of water damage. Internal problems can also cause destruction in a home from a faulty water heater that leaks or explodes to a heavy rain that seeps through the roof. Water damage can destroy the electrical wiring and can cause an unhealthy mold to grow in the interior structure of the home. Mandatory Flood Insurance Homes that are located in known flood zones or have the potential to flood may be required to carry flood insurance. This is a decision made by the lender and must be purchased for the home loan to go through. Premiums will vary from basic coverage to protect the house to extensive coverage to pro- tect your property. Shop and save with flood insurance compa- nies that offer the ideal coverage to meet and exceed your budget or ask your insurance car- rier if they can offer you a discount to add the flood insurance to your current policy. Most flood insurance policies are actually handled by the federal government. You can find more information on government flood insurance programs at http://FloodSmart.gov. Policy Terms and Conditions Once you have paid the initial premium pay- ment, your flood insurance coverage may not go into effect for 30 days upon signature. If this time frame creates stress that your valuables have a lapse in coverage, simply place your items in storage until the policy kicks in. Expensive electronics, antique furnishings A high-risk policy may calculate the premi- um with how many floors are on the property, proximity to a flood zone, year the building was constructed, quality of construction, and how many tenants reside in the building. Moderate- to low-risk candidates pay the least premium amount starting at a minimal amount per year. Should a flood disaster occur and cause more damage than the minimal pol- icy covers, federal and state disaster relief funds may be available upon request. Finding the Right Policy Company First time buyers or those who wish to shop for the best rates and service should check with the local real estate professionals for a list of flood insurance providers. Key decisions include the rates, deductibles and the amount of coverage you can afford. The average flood insurance policy is approxi- mately $600 per year, but that number will fluctuate with the amount of protection desired or if your home is located in a high- risk flood zone. Whatever the payment is going to be, it is significantly less than paying for repairs from your own pockets. Water damage can affect any home at any time and strike without warning. Costly repairs include an overhaul of the electrical wiring, carpet replacement, and deep cleaning to remove mud and debris. Your flood insurance concerns may seem like a nuisance because everybody believes a flood will never happen to them. However, when struck by water damage, your policy is the most effective tool to repair and retain your home. Alex Mason is a former real estate agent and mortgage broker living in Los Angeles.

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