When you have property, you desire that it can help you for the longest time possible. This property could be a house, a car, just to mention but a few. But we live in a world where natural calamities can happen. These calamities include an earthquake, floods, fire, lightning et cetera. A person may not be prepared for this calamities because they are not known at what point they will happen. Therefore they might cause a huge loss to a person and this calls for the need for preparation. We shall focus on the floods for now. Floods can leave a person traumatized because they can sweep a whole compound. One way to be prepared for this eventuality is by taking an insurance policy to cover floods. Even though this is an act of God, some companies are able to provide cover against loss caused by acts of God such as floods. However, there are many factors that affect the flood insurance premiums. Outlined in the paragraphs below are aspects that influence the cost of flood insurance. One factor that affects flood insurance premiums is the flood area. If a home is located in an area that is prone to huge floods, the cost of a flood insurance goes up. On the other hand, if a home is in a less risky zone, the cost of flood insurance is relatively low. It is important that as a person chooses a place for investment to understand these issues such as how risky the place is when there is a heavy downfall. Get more details at https://www.betterflood.com/blog/flood-insurance-cost-calculator/. The other thing that affects the cost of flood insurance is the number of floors. Buildings with a basement are likely to attract high premiums as compared to those without. This is because if it floods, a lot of water can accumulate on the basement weakening the foundation of the building. This can happen as well if the lowest floor of the home is below the ground. It is no doubt that if a building has a higher level of foundation, it will attract less premiums. The other factor that affects the cost of flood insurance is the age of the building. A house that has been in existence for a long time is likely to have its foundation grow weaker. It will therefore attract costly flood insurance premiums. On the other hand, new houses are likely to be stronger hence may not be largely affected by floods hence low premiums. Get more details here: https://www.britannica.com/topic/insurance#ref86247.
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