Flood insurance is recommended for people who live within flood zones. This coverage is not included with homeowner’s insurance, and it must be purchased separately. The Federal Emergency Management Agency (FEMA) has the National Flood Insurance Program (NFIP). This program provides flood insurance in flood prone areas. Insurance companies offer coverage as well, but as stated it must be purchased separately from a traditional policy.
Floods are Natural Disasters
A large amount of natural disasters revolve around flooding. And 80 percent of flood-related insurance claims originate in high flood-risk-areas. FEMA usually offers support in these instances, usually when presidential declaration has termed the flood a national disaster. This is why it helps to have coverage for instance not declared a national disaster.
Insurance Policy Coverage
A policy provided by the government is available to communities that participate in the NFIP program. You can also buy the policy from a company to insure yourself against these flood-related losses. Just make sure the agency is legitimate and services the NFIP insurance policies. Insure your property on a cash value basis as well as the home’s structure on a replacement basis.
The NFIP policy normally starts at $112 per-year. FEMA can increase the amount up to a maximum of $250,000. But it depends on the amount of coverage needed and the level of flood risk in your area. The assets of your home can get an amount of up to $100,000 per year.
There is a 30-day grace period before your policy goes into effect. This is why you should get the policy as soon as possible.