Flood insurance policies are often divided into two main parts: building coverage and contents coverage. This is a case where reading the fine print is essential to understanding what’s covered and how it’s covered. The differences between the two can be significant, much like trying to use soy milk when a recipe calls for whole milk. Getting it right is important.
While both types of coverage protect against flood-related losses, they focus on different aspects of the property. Understanding the distinction is key for Alabama homeowners and renters who want to ensure their coverage matches their needs. Your best move is to talk to your insurance representative at Baldo-Downs Insurance LLC, serving Tuscaloosa, AL. In the meantime, here are the basics to know.
What Building Coverage Protects
Building coverage applies to the physical structure of the property. This includes the foundation, walls, electrical and plumbing systems, built-in appliances, and major features like central air units or water heaters. It also extends to permanently installed items such as cabinets, bookcases, and carpeting over unfinished floors. In short, building coverage protects the structural components of the property.
What Contents Coverage Protects
Contents coverage, on the other hand, focuses on the belongings inside the home. This includes furniture, clothing, electronics, and personal items. It also covers portable appliances, rugs, and other possessions that could be damaged if water enters the property. Renters in Alabama, who may not need building coverage, often rely on contents coverage alone to protect their household items. Unlike building coverage, which may be required, contents coverage is typically optional but highly recommended.
Building coverage safeguards the structure, while contents coverage protects personal belongings. Having both ensures that homeowners and renters are not left exposed to major losses. For Alabama residents, reviewing these options with a trusted flood insurance provider at Baldo-Downs Insurance LLC, serving Tuscaloosa, AL, is the best way to ensure comprehensive protection.
