![]() You can buy flood insurance no matter what your flood risk is. Here are some important things to keep in mind when considering NFIP coverage: 1. The program was created in 1968 to help individuals and businesses recover financially from flood disasters, and it is administered by the Federal Emergency Management Agency (FEMA). Next steps link: For peace of mind and full protection, understand how much insurance coverage you need.Are you worried about the possibility of floods damaging your property? Are you unsure if you need to purchase a separate flood insurance policy to protect yourself? The National Flood Insurance Program (NFIP) is a government-sponsored program that provides insurance coverage for homeowners, renters, and business owners in the United States who are at risk of flooding. However, these loans must be paid back, which means you're still liable for the entire cost of your damages or losses. If your community is declared a disaster area, no-interest or low-interest loans are often made available by the federal government as part of the recovery effort. Without insurance, relief from floods primarily comes in the form of loans. Having a flood insurance policy is way to protect your assets most fully from the cost of flood damages and loss. What if I don't have flood insurance and there's a flood? Some private insurers are also starting to offer “first dollar” flood policies. It can be augmented with "excess" insurance – The NFIP policy maximums are inadequate to fully cover some people's assets so a growing number of private insurers have begun offering excess flood policies, intended to provide water damage protection to homeowners over and above the coverage provided by the NFIP policies.It requires a waiting period – There is a 30-day waiting period before a flood insurance policy takes effect, so don’t wait until the last minute to purchase it.Nearly 100 insurance companies write and service NFIP policies. It's easy to purchase – Federal flood insurance policies can be purchased directly from an insurance professional.When buying flood insurance, you should know that: You can also purchase what’s called “excess” insurance coverage to rebuild properties valued above those limits. Commercial flood insurance is available from the NFIP it provides up to $500,000 of coverage for your building and up to $500,000 for its contents.Flood losses for cars are covered under the optional, comprehensive portion of a standard automobile insurance policy.("Excess" coverage over and above the maximums that are available from NFIP is offered by private insurers.) The maximum flood insurance coverage amount is $250,000 for the structure of the home and $100,000 for the contents of the home.Buildings are covered for replacement cost, but coverage for personal property is available on an actual cash value basis only. Flood insurance coverage for the structure and contents of the home are sold separately.Flood insurance covers direct physical losses from floods and losses resulting from flood related erosion caused by waves or currents of water exceeding anticipated cyclical levels and accompanied by a severe storm, flash flood, abnormal tide surge or a similar situation that results in flooding.Federal flood insurance is available where the local government has adopted adequate flood plain management regulations under the NFIP-and many communities participate in the program. Homeowners, renters and businesses can purchase flood policies from an insurer under contract with FEMA. Most flood insurance is administered through the federal government.Only a specific flood insurance policy will cover home flood related losses. Floods are not covered under homeowners and renters policies.Insuring yourself against a flood is a little different than other policies. That means, you should know how to prepare for the possibility of a flood, know your flood insurance options and obtain adequate coverage. The National Flood Insurance Program (NFIP) will also be able to provide flood risk information on your area.Įven if you don't live in a high flood risk area, you're in some danger of loss from a flood, because 20 percent of all flood claims are filed in low to moderate flood risk areas. ![]() If you're moving into a new home, apartment or business location, ask your mortgage lender, your local officials or your insurance professional if the location has been known to flood. ![]() In fact, 90 percent of all natural disasters in the U.S. According to the Federal Emergency Management Agency (FEMA) floods-including inland flooding, flash floods and flooding from seasonal storms-occur in every region of the United States.
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