Everything You Need To Know About Flood Insurance
Flood insurance protects your personal property and dwelling. Flood insurance is recommended for all homeowners. Whether you live near a coast or in a rural area; although your chances are low in a rural area that does not mean exempt. Natural disasters happen unexpectedly in all areas that’s why it is so important to be sure you are properly covered.
Why Is Flood Insurance Important?
Floods are the number 1 natural disaster in the United States and are classified as severe natural disasters. Damage from a flood is devastating and can cause financial loss. Flood insurance covers repairs to your dwelling and personal property and every homeowner, business owner, or renter should acquire a flood policy. Flood insurance policies are offered through the National Flood Insurance Program and private flood insurance companies.
What About FEMA Flood Insurance?
Flood insurance from FEMA is offered through the National Flood Insurance Program (NFIP). Coverage offered through NFIP covers dwelling up to $250,000 and personal property up to $100,000. NFIP Is a program funded and backed by the federal government and there is a mandatory 30 day waiting period from the date of purchase to the date your policy starts.
What Is Private Flood Insurance?
Private flood insurance is offered by some insurance companies. Private flood insurance offers coverages for your dwelling, personal property, and offers higher limits, for example, dwellings are covered up to 1 million and contents is covered up to $500,000 for some carriers. The waiting period is up to 2 weeks depending on the carrier and some carriers offer additional coverages such as temporary living expense, pool repair and refill (if applicable), unattached structures, and basement contents.
What Does Flood Insurance Cover?
Flood insurance covers loss from damage caused by flooding. For example, any excess of water in the home caused by a flood from a hurricane or any other disaster arising from direct flooding. A typical flood insurance policy covers your home (dwelling) and your contents (personal property). Some private insurance companies offer extra coverage for additional expenses and coverage for higher dollar homes and personal property. Whether you have a policy with NFIP or a private insurance company some of the following coverages are not available through a flood policy: Sewer line backups, or sump-pump, vehicles, landscaping, and more consult with your insurance agent to get the full list of exclusions on your policy.
What Does Flood Insurance Not Cover?
Whether you have a policy with NFIP or a private insurance company some of the following coverages are not available through a flood policy: Sewer line backups, sump-pump, vehicles, landscaping, and more consult with your insurance agent to get the full list of exclusions on your policy as exclusions vary from company to company.
Does My Homeowners Insurance Policy Cover Flood?
Although homeowners insurance covers your dwelling and personal items as well as flood insurance coverages flood is not covered on your homeowner’s policy. A standard homeowners policy covers water damage caused by, a leaking roof, leaking washing machines, frozen plumbing, broken pipes, etc. Check with your insurance agent or broker to be sure of all the water damage covered by your homeowner’s policy. Flood insurance is a standalone coverage and, in most cases, required by your mortgage lender, especially if you live in a high-risk flood zone.