Do I Need Flood Insurance And How Can I get It
Insurance is one of those things you hate paying, but then hate yourself when you don’t have it and need it.
Could you imagine not having car insurance and crashing.
Imagine not having health insurance for an ermegency procedure and they can’t help.
Imagine having children, spouse kids, loved ones passing away and leaving them with Nothing just out here begging and struggling.
Imagine your house burning down, or flood taking place and have no coverage to get it replaced or fixed.
Don’t risk being underwater—understand how this insurance works.
Your standard homeowners policy doesn’t provide flood coverage. Standard homeowners and renters insurance does not cover flood damage. Find out if you need it and learn where to get it. It’s important to note that, as a rule, homeowners, condo owners, and renters insurance does not cover damage from flooding. To protect your home, be sure to understand the risk of flooding and your insurance options.
Do You Need It?
You will need this insurance if you live in a designated flood zone. But flooding can also occur in inland areas and away from major rivers. Consider buying this insurance policy if your house could be flooded by melting snow, an overflowing creek or pond, or water running down a steep hill.
It is available for renters and homeowners, but, like earthquake insurance, it is not part of standard homeowners coverage. Flood policies are provided separately by the federal government and dozens of private insurers.
If you think you need it, don’t wait for a flood season warning on the evening news to buy a policy. There is a 30-day waiting period before the coverage takes effect for National Flood Insurance Program policies.
For those that remember the devastation from Hurricane Charley, this picture below should explain why it is going to take many, many years for SW Florida to recover from IAN.
And with only 18.5% of the people carrying flood insurance, most will deal with total losses, and never rebuild.
As home and business owners in Florida return to the devastation caused by Hurricane Ian, one of the first things they will do is contact their insurance companies to open up a claim. This process can be quite frustrating, especially when insurance companies drag their feet by unfairly delaying or denying a legitimate claim.
One tactic sometimes used to delay or deny a water damage claim is by blaming a flood (uncovered) for damage, and ignoring the fact that the flood was caused by a hurricane (covered). So quickly get one now, before it happens.
Where do I get it?
The federal government provides flood insurance through the National Flood Insurance Program (NFIP), run by the Federal Emergency Management Agency (FEMA). While the government underwrites NFIP policies, this coverage is generally sold through private insurance agents. In some areas, primary flood insurance may be available through private insurers.
About the National Flood Insurance Program (NFIP)
The National Flood Insurance Program provides coverage for up to $250,000 for the home structure and $100,000 for personal possessions.
NFIP provides replacement cost coverage for the structure of your home. This means the policy will cover the amount necessary to rebuild your home as it was before the damage. However, NFIP provides only actual cash value coverage for your possessions, meaning you will get the current value of your possessions. This amount may be considerably less than the cost you incur to replace them, especially if they are older and have depreciated value. There may also be limits on NFIP coverage for furniture and other belongings stored in your basement.
Private market primary flood insurance
There are two types of private market flood insurance:
Many private insurers are starting to offer “first-dollar” or primary flood insurance. These policies are like an NFIP policy but generally offer higher levels of coverage. Contact your insurance professional to find out whether private primary flood insurance is available in your area.
Excess flood insurance is available for homeowners who need additional insurance protection over and above the basic NFIP policy or homeowners who live in a community that does not participate in NFIP. You can purchase excess flood insurance regardless of whether the primary policy is from NFIP or the private market.
Excess flood insurance is available in all parts of the country—in high-risk flood zones along the coast and close to major rivers and in areas of lower risk. It can be purchased from specialized companies through independent insurance agents or regular homeowners insurance companies that have arrangements with a specialized insurer to provide coverage to their policyholders.
Are There Different Types of Flood Insurance?
It is typically broken into two parts, dwelling coverage and contents coverage. Just like your homeowners insurance policy, the dwelling coverage insures the physical structure of your home. Your floors, walls, roof, foundation, and other physical portions of your house would all be covered under the dwelling portion of a flood policy.
Contents coverage would cover all of your belongings, from books to clothes to major appliances. You can purchase both types of flood coverage or just one if you feel like that is the right decision for you. People living in high risk flood zones don’t have a choice, however, and must purchase both types of this insurance.
There are private insurance companies that offer it as well. Companies that offer private flood insurance sometimes offer additional flood coverage, such as:
Additional living expenses
Private flood insurance can usually be purchased as a stand-alone flood policy or as a supplement to the NFIP coverage. You can always check with your agent or insurance broker for more information about private flood insurance.
It’s easy to assume that if your home isn’t in a flood-prone area, you don’t need it. But that can leave you at a greater risk than you think.
In fact, according to the Insurance Information Institute, 90% of all U.S. natural disasters involve flooding. And the cost to repair flood damage can be more than many families are able to pay.
Get peace of mind knowing your greatest asset is protected with a flood insurance policy tailored to your risk and the value of your home.
Did you know you can’t get it immediately? Flood insurance policy generally takes effect 30 days after purchase, get it now. So when you need it. You have it. And it’s cheap when you don’t NEED IT.