Getting Covered by Flood Insurance
There are insurance options available to cover the extensive damages caused by floods. Insurance is needed by residents living in lowlands and coastal areas that are prone to flooding. Any property owner who is concerned about flooding can obtain insurance for peace of mind and financial security.
Many home insurance policies do not cover flooding, so property owners must obtain a separate policy. In high-risk areas, the federal government may require you to obtain insurance by law. However, many insurance companies do not provide a flooding policy because few areas are known to flood.
The National Flood Insurance Program (NFIP) provides easier access to coverage in participating areas. Obtain your policy from a private insurer or through a NFIP participant.
Insurance companies determine your rates based on a list of risk factors. They evaluate the risks based on their clients’ geographic locations as shown on topographical maps.
Online quoting systems are designed to help you evaluate the rates. Determine the current value of your personal property, and estimate the replacement costs.
Reducing the risk factors is recommended to reduce the costs of premiums and deductibles. Building owners can reduce flood risks by elevating the building or installing damage-proof materials. Another option is to discuss a variety of more affordable coverage plans with an insurance agent.
Types of Coverage for Flooding
The NFIP has coverage for damages made to property or personal contents up to $250,000. Business owners can obtain coverage up to $500,000.
Flood insurance covers structural building damages that occur often during floods, such as walls, floors, and ceilings. Appliances and HVAC units are covered under most plans in addition to carpets and tile floors.
Comprehensive policies cover a wider range of household items like televisions, antiques, and furniture. Additional policies cover damages to nearby properties like barns, garages or patios.
Extended liability coverage protects homeowners from getting sued by people who receive injuries on their property. Liability coverage is included on a basic plan for flood, home, and car insurance.
Coverage for temporary living expenses is covered under a loss of use policy. The insurer pays a percentage of the expenses during the process of repairs.