Tulsa, OK has taken admirable measures to reduce the effects of flooding, but it’s still commonplace thanks to the area’s weather and topography. Thankfully, home and business owners can protect their property with good flood insurance coverage. This type of insurance can cover expenses such as fixing the home structure, replacing appliances, and removing debris, enabling policyholders to get their lives back after an unfortunate incident.
Replacement Cost vs. Actual Cash Value Coverage
When buying flood insurance for your home or business, it’s important to understand the difference between replacement cost and actual cash value coverage. Replacement cost, as the name implies, covers the cost of rebuilding your home or business using the same or similar materials. Actual cash value calculates the value of the home, personal belongings, and appliances before the flood and covers what they would have been worth at that time.
Flood insurance includes both types of coverage, but insurers typically pay the lower amount. This means that you may not get as much compensation as you’re hoping for if real estate values in your area have fallen and/or the building structure, appliances, and/or furnishings aren’t worth a lot of money. What’s more, your insurer isn’t obligated to pay up to the policy limit, which means that buying more coverage won’t necessarily provide you with additional compensation after a flood.
Need More Information? Greater Tulsa Insurance Inc. can Help
Greater Tulsa Insurance Inc. specializes in helping Tulsa, OK residents get great insurance at a great price. Call us to find out more about which commercial and personal insurance policies can provide you with the protection you need and deserve.
