 Flood Insurance
"Everyone lives in a flood zone, it just depends on whether it is
a high, moderate or low risk area" — Bob Peloquin
The homeowners policy doesn't cover damage from flooding, nor can you purchase an endorsement to cover flooding. You must purchase a separate flood
insurance policy through an insurance company that participates in the National Flood Insurance Program (NFIP), a partnership between the
Federal Emergency Management Agency (FEMA) and the private insurance industry.
A flood insurance policy can offer protection for both the building and its contents. If your community participates in the NFIP, then you are eligible
to purchase flood insurance. Participating communities must adopt certain floodplain management practices in exchange for the availability of flood insurance
for their residents.
Do I Need Flood Insurance?
You should consider purchasing flood insurance even if you don't live in a high-risk area for floods. According to FEMA, approximately 25% of all flood
insurance claims come from areas that are at low to moderate risk for floods. Even if you don't live near the ocean, a river or other body of water, factors
such as storms, melting snow, inadequate or overloaded drains, changing landscape due to developers, busted water mains and hurricanes can cause very
serious flooding. Purchasing flood insurance is an option to think about. If you are buying a home or refinancing a current mortgage for a home located
in a high-risk flood zone, you are required to purchase flood insurance as a precondition for obtaining a federally backed mortgage.
How Much Flood Insurance Can I Buy?
The flood insurance policy offers flood protection for both your home and its contents. You can purchase up to $250,000 of coverage on the building
itself and up to $100,000 of coverage for the contents.
How Much Does Flood Insurance Cost and How Do I Purchase It?
Flood insurance costs vary widely. Factors such as the flood zone location, when the structure was built and whether or not an elevation certificate
is needed will come into play. However, if you live in a lower-risk area, you can typically reduce the premium by purchasing a lesser amount of coverage
or selecting a higher deductible. In some cases, you may qualify for a preferred policy.
If you decide to buy flood insurance; contact us for assistance. We can provide a flood zone determination and develop a quote.
Miscellaneous Facts About Flood Insurance!
- Generally there is a 30 day waiting period before a policy becomes effective, unless it is a lender requirement.
- Unlike other policies, you can purchase flood insurance even if you are in a high-risk area as long as your community participates in the NFIP.
- It is not meant to be a catchall policy; therefore it doesn't cover all types of water damage.
- It is meant to cover elements of the building, such as the foundation, furnace, hot water heater, wiring, stairways and some appliances such as freezers
cleanup and increased cost of construction.
Typical Exclusions!
- Contents and personal belongings such as clothes or furniture
- Finished walls, floors, ceilings
- Sewer backup unless directly related to a flood
- Your wet or damp basement
Finally,
Your homeowner policy doesn't cover basement flooding at all. Although flood insurance doesn't cover every situation, it is still probably your best
bet for dealing with basement flooding expenses
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