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Flood Insurance

Be Informed on Flood Insurance

Good flood insurance is engineered to financially protect property owners from water that damages both covered structures and/or the belongings of the owner. This insurance protection can be purchased from insurance agencies but is also under government regulation. Typically, this results in a rather uniform cost for similar policies regardless of where it is obtained.

The National Flood Insurance Program (NFIP) was created to provide coverage to those who live in designated flood zones and is operated by The Federal Emergency Management Agency (FEMA). Note that there are insurance providers who also provide additional coverage beyond this basic protection to help fill the gaps.

Renters can also purchase coverage for their personal property. After filling out an application and making payment, the insurer then will process the policy. Normally, there is a one-month waiting period before coverage can actually be used. The maximum coverage available for a home is 250,000 dollars, while for personal items, the limit is in the amount of 100,000 dollars. If flooding happens, you are eligible for a payout. Your agent can help you with dealing with the claim process.

There are basically three kinds of coverage offered:

Replacement Cost- This protection pays out for the expense of replacing a damaged home.

Personal Property- This is what protects one’s items that are inside the home. Items protected can include furniture, appliances, wardrobe, fixtures and more.

Building Protection- This covers the actual structure of a commercial property or home. This includes the foundation, walls, attached staircases, etc.

Insurance for floods can save one from enormous out-of-pocket costs on the renovation or rebuilding of any covered structures. If water damages personal possessions, they are also protected.