The Difference Between Auto and Home Insurance Services in Cape Coral Regarding Flood Damage

by | Nov 12, 2019 | Insurance Services

A flash flood can cause roads and parking lots to quickly be covered with rainwater at a significant depth, especially in lower-lying areas. A person might go into a store and walk out 30 minutes later only to find his or her vehicle up to its frame in water. The person’s Automotive Insurance Services in Cape Coral should cover damage up to the maximum allowed as long as he or she carries comprehensive coverage. This may raise the question as to why homeowners insurance does not cover flood damage without a special flood policy.

Comprehensive Coverage

Vehicle owners usually are required to have comprehensive coverage for automotive Insurance Services in Cape Coral if they are financing the car or truck. Otherwise, this is elective coverage, and they may have decided not to pay for the extra insurance. In that case, their insurer is not obligated to pay for repair work for a parked car damaged in a flood. The insurer also is not required to pay the policyholder the market value of the vehicle if it is a total loss.

Collision Coverage

Even if the driver made a questionable judgment call and drove into standing water, collision coverage should still pay for damages. Drivers sometimes are overly optimistic about their vehicle’s ability to handle deep water or about how deep that water actually is. If the car stalls, it will have to be towed.

Auto vs. Home Insurance

Why would automotive insurance cover flood damage when standard homeowners insurance does not cover a house or condo, or an apartment that someone owns? The reason is the dollar amount. The median sale price of a home in Florida is about $228,000 in 2019. Anyone interested in getting a quote for automotive or home coverage may learn About Lee County Insurance Agency at the website.

Floods can easily destroy a large number of homes in an area, especially when connected with a hurricane or tropical storm. Homes affected by rising river water due to excessive rainfall may only have the basement flooded and a small part of the first floor, but those are still expensive restoration and repair jobs for insurance companies to cover.

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