Flood Insurance

What About Flood Insurance?

Good flood insurance is in place to financially protect property owners from water that damages both covered structures and/or their belongings. It is a stand-alone plan that accompanies one’s regular homeowner’s coverage and offers extra protection that is not part of a usual homeowner’s insurance policy. Basically speaking, any flooding that originates from the ground, as opposed to from above, (and that damages your property), is covered with this plan.

Who Needs It?

This kind of coverage is tailor made for any homeowner who has property near or on the coastal areas or in a region that been determined to be within a hundred-year flood zone by the National Flood Insurance Program (NFIP). The NFIP was created to allow for coverage to those who live in these designated flood zones and is operated by The Federal Emergency Management Agency (FEMA). Homeowners who reside in these flood zones or who carry federally backed mortgages are mandated to obtain this kind of insurance.

How to Acquire Coverage

These insurance plans can be purchased from some insurance providers but are under government regulation. Normally, this results in pretty standard pricing for similar policies.

Who is Covered?

Policies are provided to both homes and business properties. Homes that are financed by government-sponsored lenders are required to carry this coverage in the aforementioned special flood zones. Renters may also purchase this coverage for their personal property too.

Waiting Period

Once one is determined to acquire this kind of coverage to add to their standard homeowner’s insurance, there will be waiting period of 30 days imposed prior to the plan going into effect. This prevents homeowners from rushing out and getting coverage only days before a hurricane or other storm is due to arrive and thereby game the system.

What is Covered

This special kind of coverage will protect the structure of the home, including a pre-determined litany of personal contents of your house, up to the policy limits. Bigger, built-in appliances, like refrigerators, stoves and dishwashers are often covered under your usual insurance policy, but this special coverage will also safeguard other valuable belongings, like computers and other electronics, expensive wardrobe, jewelry, coin collections, art and more. Keep in mind, however, that currency, stock certificates and the like, (in paper form), will not be included in this coverage. Also, all that sits outside the boundaries of your home and garage, such as a patio, hot tub or pool, deck or septic system, will also be excluded from coverage.

Conclusion

Good Insurance for floods can save considerable out-of-pocket costs when one needs to remodel, repair or rebuild covered structures. If water damages personal belongings, they are also covered. It can give one great peace of mind in knowing that he or she and family are protected.