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Most Arizonans aren't likely to purchase flood insurance, even after the recent torrential downpours rendered many homes and streets completely flooded and unnaccessible. Although it's not likely to happen again anytime soon, a lot of homeowner's already learned the hard way that flood insurance is not covered in your standard policy.
This got us thinking: What other kinds of disasters, that you have no control over, are not covered in standard policies. We compiled a list of 6 different potential hazards that aren't covered by traditional policies, but could lose you a lot of money if they aren't covered.
1. Mold
Mold may be covered in some policies on a limited basis, but it is probably not fully covered. Talk to your agent about what kind of mold coverage you have.
2. Sewer Backup
This is important, as for a small extra fee of $40 or $50, you can add this to your current policy to be protected against a sewer emergency
3. Sinkholes
While sinkholes aren't common in AZ, it is required to have a standard sinkhole policy in Florida, where they are much more common.
4. Termites
With termites in Arizona, it's not a matter of if it happens to you, it's a matter of when. Most homeowner policies partially cover termite damage, but may not cover you in all termite related damages. It would be a good idea to check with your insurance agent to make sure you are covered for all types of termite damage.
5. Nuclear Accidents
Nuclear accidents aren't common occurrences, but if your insurance doesn't cover it, you could be in trouble. There is a plant nearby in the Valley.
6. Acts of Terrorism
A lot of issues with this kind of coverage came about after the Boston Marathon bombing. If you live in an apartment or condo you may have partial coverage, but you aren't fully covered if an act of terrorism destroys your home.
These are all things that you want to talk to your insurance agent about, no matter how minisucle or silly they may seem. Flood insurance in Arizona may have seemed like a bad idea until a few weeks ago. Now we have clients that are spending thousands upon thousands of dollars out of their own pocket, just to restore their homes to normal.
If you know anybody in Phoenix that is buying or selling real estate in the next 90 days, please give us a call. We'd be glad to help out!
Teaser: Up until a few weeks ago, you probably would have though somebody with flood insurance in Arizona was crazy. Well, who's laughing now? There are actually a lot of things you have no control over that are not covered in your standard homeowner's insurance policy. To see some of the other disasters that you probably aren't covered for, check out our latest video!
