Regardless of where you live, there is always a possibility that your home could be damaged by a flood. Even a minor flood can cause significant damage, so all homeowners should be prepared for a worst-case scenario. By learning more about what flood damage repair work may cost, you can be proactive about preparing for this type of unfortunate situation.
Understanding the Scope of the Damage
The cost of flood damage repair will vary based on numerous factors. A minor flood that covers only an inch or two in your home and that is cleaned up quickly may have minimal cost.
On the other hand, if flood waters rise by several feet, and particularly if the waters remain in place for more than a few hours, the damage can be astronomical. All personal items on that level of the home may be destroyed. Everything from flooring to drywall to electrical work and more may need to be replaced. There is also a chance that other areas of the home could be damaged by mold growth related to high humidity levels in the home.
Reviewing Your Insurance Policy
Many homeowners may be inclined to file a home insurance claim at the first sign of this type of damage. However, a typical home insurance policy does not cover water or mold damage. You generally need to purchase this coverage separately or through an addendum to your standard home insurance policy before a flood or mold growth situation develops. It is essential that you review your coverage today and that you update it as needed to ensure that it is as protective as possible.
Paying for the Damage
If you are able to file a claim, you will need to pay for your home insurance deductible, which commonly may be between one to two percent of the insured amount. Remember that any portion of the repair work not covered by insurance will be yours to pay for on your own. You may also need to pay for a hotel or other lodging options while your home is being repaired.
You can see that even if you have flood coverage, this type of situation can still cost a fortune. All homeowners should have cash in savings for use in emergencies. However if for some reason you don’t have a savings or the damage goes beyond what you can afford, you do have options:
- Credit Card Advances
- Personal Installment Loans
- Cash Out Refinance Loan
- Home Equity Line of Credit
As a homeowner, it is important to think about all possible risks and perils that you may face and to confirm that your insurance policy covers them. Then, ensure that you have cash on hand at all times to pay the deductible and any additional expenses that you may incur in an emergency situation.