Flood insurance protects your home from one of the most destructive natural phenomena: Floods. If you live in a flood zone, why not think about a flood insurance policy now, rather than when the floods are at your doorstep?
Did you know?
Over 50% of flood claims occur in areas considered to have low flood exposure.
Homeowners insurance does not cover flood damage. Flood insurance is a separate policy, which can be purchased for as little as $ 80 a year. Flood insurance, however, can be purchased in conjunction with a homeowners policy and from the same office or agent. It is federally subsidized coverage issued and administered by the Federal Insurance Administration, an arm of the Federal Emergency Management Agency (FEMA).
Just an inch of water can cause costly damage to your property. Flood insurance is protects homes, and commercial structures. Coverage is available for contents as well.
Flash floods often bring walls of water 10 to 20 feet high. Damage from rising or tidal water is specifically excluded from a homeowners policy and must be covered by the flood insurance issued under the National Flood Insurance Program (NFIP).
Types of flood insurance policies
There are 3 standard flood insurance policies for General Property, Dwelling and Condominiums provided by the NFIP. All coverage information required by the policyholders is provided here. Select the one that fits your home and your pocket best:
How does flood insurance work?
Flood insurance is issued through the National Flood Insurance Program and it has an automatic five-day waiting period.
You can buy flood insurance even if your home has been flooded before. If it is a case of rising water and you find yourself not covered by a federal flood insurance policy, help will still be available if a disaster declaration is issued for your area.
Flood insurance policies on the other hand, can pay claims irrespective of whether a disaster is declared or not. However, note that there is a 30-day waiting period after you have applied and paid the premium before the policy comes into effect.
The policy will not cover a disaster in progress. When you file a flood insurance claim, you can request a partial payment immediately and can start recovering faster. Most importantly, Flood insurance claims are financed by the premiums paid by the policyholders rather than the money given by the taxpayers
What to do when claiming insurance?
So, do you need flood insurance?
Flood insurance is advisable if your home is in an area declared a flood zone under the National Flood Insurance Program.
Insurance agents have the requisite maps and will know whether the property is in a flood zone. Mortgage companies also know and generally ask for proof of flood insurance at the time of closing on the loan.
There is nothing like the best time to buy a flood insurance policy. Be prepared, now.