Flood Insurance

As explained by NFIP (National Flood Insurance Program), it is insurance created for the purpose of providing an insurance alternative to disaster assistance to meet the rising costs of repairing damage to buildings and their cargo caused by floods. This is important because flood insurance is not covered under most home insurance policies.

Who it is For?

Anyone can purchase this insurance, but those in highest need are people living in moderate- to high-risk flood zones. Rainfall and elevation play major parts in determining an area’s flood risk, but things like melting snow and severe coastal weather can also cause flooding. Unfortunately, this event can happen anywhere.

How it Works

Your home is covered in the event of a flood disaster. In general, most of your home’s core will be covered by this insurance, including the foundation and the systems that keep it operating. Appliances, carpets, and most personal belongings are also covered under flood protection. Belongings in the garage are an exception and would not be covered under the policy.

Different Types of Coverage in Existence

Because flood protection is a national program backed by a federal government, any type of flood coverage will cost the same. For people living in lower-risk areas, there is the Preferred Risk Policy, which is a lower-cost option for residential and non-residential properties in low to moderate risk areas.

Other types of coverage are:
1-4 Family structure
1-4 Family home contents
Other residential structures
Other residential contents
Business structure
Business contents
Renter contents

Major Benefits

• A sense of control. Insurance claims are paid even if the President doesn’t declare a disaster.
• No payback requirement.
• Policies are continuous, and cannot be cancelled or non-renewed due to repeat occurrences.
• Relatively low price of $600 annually. PRP’s cost about $200 annually for low to moderate-risk a

Insurance in case of a flood may not be for everyone, but everyone COULD benefit from having one of these policies. Knowing your home is safe in the event of one of these disasters provides homeowners and renters with a real peace of mind. Even if you don’t live in a high-risk flood zone, these disasters can happen anywhere, so it makes sense to be prepared.