Types of car insurances that cover flood damage.
Natural calamities have all the potential to cause irreparable damage to your car. Especially calamities like floods can render the car useless. And such calamities come unannounced. Suppose you hitch a boat on your brand new Nissan Pathfinder and set out on a river trip to the Mississippi river and suddenly it starts flooding. Now, even if you come out safe from the flooding, the flood has done the damage. That’s where having your vehicle and insurance that cover becomes extremely important.
A vehicle affected by a flood is often declared as a total loss. Floodwater seeps into the car and corrodes and affects every component of the car. The water erodes the body, gets into the engine, and damages the electricals as well. However, if you have insurance that covers the damages caused by floods, you don’t have to bear the brunt of repairs and replacement. So what type of insurance covers damage and loss due to flooding? What are the things that you should be careful about while selecting an insurance package? We’ve got you a quick guide on insurance policies that’ll cover your vehicle during floods.
You’ll find many insurance companies offering different packages but not all of them cover damages due to floods. If you have something like liability coverage on your vehicle, then it just covers damage caused by your car to other cars, passengers, or property in the event of a mishap. This type of insurance doesn’t cover the damages caused by floods or for that matter any other natural disaster.
Hence, you must get comprehensive insurance coverage for your vehicle. It is only a comprehensive policy that covers the damage caused to your vehicle due to floods. If you’re getting your car financed, most lenders require the car to be comprehensively insured. However, those people buying cars without any financial assistance usually are reluctant about getting a comprehensive policy and save some money without releasing the fact that in an event of flooding, not getting a comprehensive cover will just burn a bigger hole in the pocket.
The average cost of standard collision insurance that most cars have is around $525. According to a stat published by Insure.com, comprehensive insurance costs just $190 more over the basic collision insurance. Now that’s nothing compared to the damage flooding can cause to your vehicle. Thus, it is highly recommended that you always get comprehensive insurance for your vehicle even if you have to pay a couple of hundred dollars extra.
Many people still live under the impression that home insurance covers flood damage to the car. And even if you have the additional flood damage on your home insurance, it only covers damage to any valuable personal belongings that you might have in the car. So get this cleared right away- the house insurance with the flood cover DOES NOT cover any damage inflicted on your car.
Even if you buy a used car, getting a comprehensive cover is a good investment, especially when the age of the car is less than 10 years. However, our advice would be to get a comprehensive cover on your car until the cost of the policy is not greater than your car’s value. If you do not have a comprehensive cover and if your car is flooded, you’ll simply have to spend a lot of money fixing it or you may incur a total loss.
In case you do not have a comprehensive cover, the only other alternative is that you apply for some aid to the FEMA. The Federal Emergency Management Agency (FEMA) provides financial assistance and covers the damage caused to personal belongings, including cars. However, the assistance offered by FEMA is in the form of a low-cost loan and that’s nothing as close as to the cover offered by comprehensive insurance. Moreover, getting the FEMA aid is a tedious process while claiming insurance is simply hassle-free.
Sometimes, the towing insurance may cover the damage caused to the car. In case of a flood you’re told to move to an area of a higher altitude, some insurance companies would pay for the damage if you have the towing cover added to your policy. However, there are always a lot of terms and conditions involved and the process isn’t as straightforward as comprehensive insurance.
And even when you have comprehensive insurance on your vehicle, there are a few things that you should remember. If you’re hit by a flood, thoroughly inspect all that has been damaged in your car. Furthermore, we would recommend you take as many pictures and videos of the car during and after the flood.
This would only help you to get a fair amount of money from the insurance company and simplify the claims process. Also, submit the claim as soon as possible. Once you’ve taken the pictures and the videos, send them right away to the insurance company. The sooner you submit your claim, the sooner you get your settlement money.