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Who Can Purchase Flood Insurance?
Almost anyone whose community participates in the National Flood Insurance Program can buy flood insurance. Even people whose homes have been flooded in the past can purchase coverage.
An exception is homes in Coastal Barrier Resources System areas. In 1982, Congress passed an act to discourage building in fragile coastal areas, making national flood insurance unavailable to those homeowners. Private insurance may be available, so talk to your insurance agent.
Who Needs Flood Insurance?
You may think the only people who need flood insurance are those who live in flood zones or in areas that are affected by tropical systems. That's not true. Twenty to twenty-five percent of all flood-related claims are made by people in low to moderate risk areas.
The National Flood Insurance Program (NFIP) defines flooding as "a general and temporary condition during which the surface of normally dry land is partially or completely inundated." That can happen anywhere after heavy rains, snow melts, or other events that trigger water release.
Lenders may require some home owners to purchase flood insurance before closing on a home.
How Much Does Flood Insurance Cost?
Homes in low to moderate risk areas qualify for the Preferred Risk Policy, which is $100 per year. The average flood insurance policy runs from $300-$400 per year for $100,000 of coverage.
Isn't Flood Insurance Covered By My Homeowner's Policy?
No--your homeowner's policy will not cover losses caused by flooding. It should cover blowing rains that might enter as a result of wind damage--but not flooding.
How Much Coverage Can I Buy?
You can buy up to $250,000 of coverage for your home's structure and up to $100,000 of flood insurance coverage for its contents.
Renters can purchase a contents policy.
Ask your insurance agent to explain the items covered by each type of policy.
When Can I Purchase Flood Insurance?
You can buy flood insurance anytime, but the policy won't go into effect for thirty days. That means you can't wait until a storm is approaching to purchase flood insurance.
There are a few exceptions to that rule.
If the coverage is related to making, increasing, extending, or renewing a loan, there's no waiting period.
If the initial purchase of flood insurance is made during the thirteen-month period following revisions to flood maps in your community, there is a one-day waiting period.
Ask your insurance agent for the details about these exceptions.
Who Sells Flood Insurance?
You can purchase flood insurance from your local insurance agent. The policy is backed by the US government.
What About Commercial Buildings?
Yes, you can purchase flood insurance for commercial buildings. Coverage limits are $500,000 for the building and $500,000 for its contents.
Why Bother--I Can Always Get Federal Assistance
Only if the President declares your area a Federal disaster area. Most flooding events do not fall into that category.
Federal aid is funding you must repay. With flood insurance so affordable, it's not worth the risk. Talk to your insurance agent about Federally backed flood insurance
[ ..More About Miami Beach Flood Insurance Facts ]
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