This year, as the cool chills of winter give way to the warmth of spring, the United States is expected to face extreme weather conditions. Natural calamities such as floods, earthquakes, and hurricanes will wreak havoc, leading to billions of dollars in damages and impacting millions of lives. Most homeowners with insurance assume they are well covered for such damages, but the unfortunate reality is that standard insurance policies don’t provide coverage for high-risk areas. This could leave millions amidst costly, or even impossible, repair needs. The availability of a line of credit is a lifeline that can assist in managing these expenses and restoring homes to their pre-damage state.
Most home insurance policies cover damages to your home and your personal belongings, and provide liability in case of accidents on your property. There are various levels of property damage coverage available to cater to different homeowner needs. Typically, insurance companies bear responsibility for damages resulting from events such as fire, theft, and strong winds. Also, most policies cover natural disasters, often termed “acts of God”. However, predictable disasters, such as tornados in Tornado Alley, are typically not included. Specific additional coverage is needed in these situations.
Renters might believe that they aren’t responsible for property repairs, but without proper coverage, they too can face significant losses. Landlords generally have insurance that covers the costs of repairs to the building structure, and they’re obligated to return your rented home to its original condition, as it was at the beginning of your lease. However, a landlord’s insurance policy does not cover damages to personal belongings. While the cost of structural repairs will be shouldered by the landlord, without rental insurance, compensation for valuable items damaged by floods, earthquakes, or other disasters won’t be possible.
For homeowners who haven’t supplemented their general insurance with disaster-related provisions, most, if not all, repair costs will be out-of-pocket. The costs associated with flood damage, such as removal of damaged items, mold treatment, replacement of flooring, walls, ceilings, and appliances, can be prohibitively expensive. Without support from the insurance company, homeowners might find themselves at a loss on how to manage these repair costs.
A line of credit serves as an excellent safety net during times of disaster. Offering a higher credit limit based on your monthly income, it can be a more favorable solution than other types of loans. Depending on your state, you could initially qualify for up to $1,000, with the potential for more as you establish a responsible repayment plan. According to a study by the University of Chicago, Americans dealing with disasters have benefited from assistance provided by third-party lenders. The straightforward lending process can provide timely cash advances for urgent home repairs.
When you apply for a line of credit from a trustworthy third-party lender, such as MoneyKey, all loan agreements are crafted strictly according to your state’s laws. MoneyKey is committed to adhering to all industry and state standards, and ensures full disclosure of terms and conditions before any loan signing. MoneyKey recognizes the stress of unexpected emergency expenses, and aims to make the loan process as simple and as transparent as possible. Reach out to their dedicated customer service team to learn about the rates and limits available to you via phone, email, or online chat to get the support you need in this challenging time.
