MMG WEEKLY – HAPPY MEMORIAL DAY!

MMG Weekly / Vantage Production.blueThe Mortgage Market Guide View… 

Insurance Coverage for Summer Storm Damage

“If my home is damaged by a summer storm, will my insurance cover repairs?”

Where water-related damage is concerned, the answer depends on whether the water came from above or below. In general, if the damage was caused by wind-driven rain that came in through your roof, windows or doors, your insurance will cover the cost of repairs.

But if the damage is caused by flooding, a far more common problem during storm season, your homeowners insurance will not cover it. The only way to protect yourself from flood-related damage is to buy flood insurance from the federal National Flood Insurance Program. Premiums range from about $200 a year to more than $2,000, depending on your area’s risk of flooding.

Never assume you don’t need flood insurance just because you don’t live in a coastal area. In 2011, torrential rainfall from Hurricane Irene caused widespread flooding throughout the Northeast. Vermont was hard hit, and many of the victims didn’t have flood insurance. “A lot of Vermont residents never thought they’d be involved in major flooding,” says Richard McGrath, chief executive of McGrath Insurance Group, in Sturbridge, Mass.

You can purchase federal flood insurance through a local insurance agent. Don’t wait until storm clouds gather to buy a policy; typically, there’s a 30-day waiting period before premiums take effect. For price quotes, go to FloodSmart.gov.

Sewage backup. If heavy rains overwhelm your storm-water system, sewage could back up into your house—an expensive and smelly mess. Most standard homeowners policies don’t include sewage-backup coverage, but you can purchase a rider that will pay for $10,000 to $20,000 of damages for about $50 to $75 a year, McGrath says.

Damage from trees. Old-growth trees lose their charm in a hurry when lightning, wind or heavy rain knocks them down. If the tree hits your house, garage or other insured structure, the damage is usually covered by your homeowners insurance, says Jeanne Salvatore, spokeswoman for the Insurance Information Institute.

Damage from a neighbor’s tree—or even from one a block away that was uprooted in a windstorm—is also covered. If your insurer believes your neighbor contributed to the problem by failing to take care of the tree, it may try to collect against your neighbor’s policy, Salvatore says. In that case, you could get a break on all or part of your deductible. But it works both ways: If your tree damages your neighbor’s property, you could be held responsible. Your insurer could refuse to cover damage to your property if it believes you were negligent.

Most policies won’t pay to remove a tree that falls in your yard but doesn’t hit anything—although you may be eligible for some coverage if the fallen tree blocks your driveway or prevents you from getting into your house.

Get a tax break? You may be able to recover some of the costs your insurance doesn’t reimburse when you file your taxes.

Losses from hurricanes, floods and other disasters that aren’t covered by your policy are deductible, as long as you itemize. You won’t be able to deduct the entire amount of your losses, however. First, you’ll have to reduce the amount of your loss by $100. Then, you can deduct only the amount that exceeds 10% of your adjusted gross income. For example, if you suffered $20,000 in unreimbursed losses and your AGI is $100,000, you would subtract $100, then subtract $10,000 (10% of your AGI) from the $19,900 balance, bringing your deduction to $9,900.

By Sandra Block Kiplinger.com

Reprinted with permission. All Conents ©2014 The Kiplinger Washington Editors.

Economic Calendar for the Week of May 26 – May 30

ate
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. May 27
08:30
Durable Goods Orders
Apr
NA
2.9%
Moderate
Tue. May 27
09:00
S&P/Case-Shiller Home Price Index
Mar
NA
12.9%
Moderate
Tue. May 27
10:00
Consumer Confidence
May
NA
82.3
Moderate
Thu. May 29
08:30
Jobless Claims (Initial)
5/24
NA
NA
Moderate
Thu. May 29
08:30
Gross Domestic Product (GDP)
Q1
NA
0.1%
Moderate
Thu. May 29
08:30
GDP Chain Deflator
Q1
NA
1.3%
Moderate
Thu. May 29
10:00
Pending Home Sales
Apr
NA
3.4%
Moderate
Fri. May 30
08:30
Personal Income
Apr
NA
0.5%
Moderate
Fri. May 30
08:30
Personal Spending
Apr
NA
0.9%
Moderate
Fri. May 30
08:30
Personal Consumption Expenditures and Core PCE
Apr
NA
0.2%
HIGH
Fri. May 30
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
1.2%
HIGH
Fri. May 30
09:45
Chicago PMI
May
NA
63.0
HIGH
Fri. May 30
10:00
Consumer Sentiment Index (UoM)
May
NA
81.8
Moderate

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

Equal Housing Lender

Tell me what you think

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s