Every year, people who live in flood-prone areas are faced with the decision of whether they should purchase flood insurance. It is a difficult choice because there is so much information to sift through and decipher. This blog post will answer all your questions about what it means to have flood insurance, why you need it, and how you can get started today!
What is Flood Insurance?
Flood insurance is coverage that helps pay for damage to your property caused by flooding. Flooding can happen anywhere, but it usually occurs in areas near rivers or other bodies of water which act as natural flood zones.
The National Association of Insurance Commissioners recommends that every homeowner have a minimum amount of 100,000/50,000 dollars’ worth of flood insurance.
Floods are among the costliest natural disasters that can happen – both when it comes to repairing your home or business and recovering from the emotional toll of being displaced.
Flood insurance is a necessary protection measure for anyone who lives near an area that could flood, but it’s not always easy to find out if you live in such an area or what your risk level entails. To make this process easier on homeowners and business owners alike, FEMA developed FloodSmart.org to help identify your risk level.
The first step is identifying the type of flood zone you are in: A, B, C or XZONE.
If you’re not sure which one applies to you and need more information about how FEMA evaluates where homes and businesses are at risk for flooding – visit FloodSmart.
Why You Need It
Protecting your home and business is important but understanding the risks of a flood can be confusing. To do this step you’ll need to know which type of zone you’re in: A, B, C or XZONE. If not, sure which one applies to you visit FloodSmart.org for more information about how FEMA evaluates where homes and businesses are at risk for flooding.
How to Get it
Becoming insured for flood damage can be a complicated process. FEMA provides information about how to get insurance on their website and offers links to companies that offer flood coverage in your area.
Not sure which company is best or if the premiums are too high, you may want to contact an agent who sells homeowners policies.
If you’ve been denied flood insurance coverage, provide the denial letter to your agent or company and they can help determine why it was denied. There may be a good reason for the rejection, such as not meeting FEMA’s Flood Protection Guidelines, then an appeal may be possible.
For many people with mortgages who live near a body of water, it may be difficult to find affordable coverage. If this is the case for you, contact your mortgage provider and ask about any options that are available with them or through FEMA’s Preferred Lenders Program.
The Benefits of Having it
When you are looking at the available flood insurance options, it is important to consider what type of coverage and amount would best suit your needs. There are a variety of different policies that offer various levels of protection for homes or businesses:
* Flood Insurance Coverage Type – protects against property damage incurred from flooding due to overflowing rivers, storm surge, or other natural disasters
* Flood Insurance Coverage Amount – the maximum amount that is paid for your property loss in relation to a covered flood event. It is important not to purchase more coverage than you need as it will be an unnecessary expense
When thinking about how much coverage you should carry on your home insurance policy, there are some key factors you need to consider.
The Drawbacks of Not Having it
The downside of not having flood insurance is that the required assistance programs are usually insufficient for those who have been impacted by flooding. If you live or work in a flood-prone area, it may be wise to invest more than your local government requires so that no matter what happens, you will know there is enough money available to rebuild and replace what you have lost.
Tips for Finding the Best Deal on Flood Insurance
When it comes to flood insurance, you want the best coverage for your budget. There are a lot of companies out there that offer different levels of protection and will charge differently depending on how much risk they perceive from their customers’ property in relation to the total number of people who live or work nearby.
Consequently, one must find an insurance company that offers a level of protection with the lowest premiums possible.
This can be difficult, but it is possible to find an insurance deal in this situation by doing some research and being vigilant about the details of your coverage.
Some tips include:
– researching different companies to see who has competitive rates for various levels of flood insurance,
– comparing rates between different companies with similar levels of protection to see which company provides the lowest premiums for a given level of coverage.
This last point will vary depending on where you live in relation to other properties and who your neighbors are. For example, if all of your property is low risk but there’s a high concentration of properties at high risk, you’re going to have a higher insurance premium.
This is just one of the factors that can affect your premiums and it’s best not to assume anything- ask as many questions as you need to get the information that will help you make an informed decision about which company offers the best deal for flood coverage.
If you are wondering about flood insurance, don’t worry! Our quoting hours are Monday through Friday from 8:30 AM to 5:00 PM. You can also request a quote online and we will take care of the rest while you save money on your premiums with our We Handle All the Work!
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.