Make sure you’re covered

In some cases, your mortgage lender may require you to carry flood insurance. If this is the case, your lender will let you know before the loan closes. While earthquake may not be required by lenders, it can provide important coverage on your new purchase.

Your home’s location is usually the biggest factor in determining the cost of flood or earthquake insurance, because some areas have a higher risk of floods or earthquakes than others.

Here are some other factors that might affect your costs:

• The age of your home
• The number of floors in your home and whether you have a basement
• The framing and foundation materials used to build your home

Flood and earthquake insurance typically cover the following problems when they are caused by a flood or earthquake:

• Damage to the interior or exterior of your home
• Damage to your personal property
• Temporary housing if your home is uninhabitable

Most flood and earthquake policies have some exclusions, which you can discuss with your agent. In some cases, your homeowners insurance might cover some of those costs.