The homeowners and renters insurance described above usually does not cover flood damage in any way. That’s why the National Flood Insurance Program is in place in the United States to reduce the impact of flooding on homeowners and renters.
The memory of Hurricane Sandy in 2012 is still fresh in the minds of Americans, after which the residents of Maryland, New York and New Jersey could not recover for a long time.
There are two types of flood insurance: personal property and building property. Flood insurance covers only physical damage to a building or personal property directly caused by a flood.
Flood insurance policies – separate from homeowners and renters insurance – are backed by the National Flood Insurance Program and are designed to replace your property and rebuild your home after a flood. NFIP policies cover up to $250,000 for your home and up to an additional $100,000 for your property.
“The limits are not too high for some areas of the country,” says Tom Santos, vice president of federal affairs for the American Insurance Association. – “So homeowners (in those areas) should consider purchasing additional coverage from private insurers.
Most mortgage lenders require flood insurance for homes located in high flood risk areas. Similarly, if your home is in such an area and you have previously received federal disaster assistance, you need to have flood insurance to qualify for future assistance as well.
How does this work?
There is a 30-day waiting period – only after that period does insurance take effect. So you can’t get insured quickly when a hurricane is already hitting your state. The policy should also be renewed annually. If you realize you need coverage – plan ahead. Most insurers sell NFIP policies, so contact your insurance agent or broker. You can also get a referral agent by contacting the NFIP help center at 1-800-427-4661.
The amount you will pay depends on the features of the deductible and your home, including objective flood risks. While the average annual premium is between $600 and $700, it is valid for those who live in low- and medium-risk areas.
“If you live on the coast, it could be thousands of dollars because the risk is greater,” the expert says.
To apply for flood damage, contact your homeowner’s service provider as soon as weather conditions normalize. The damage will be assessed and determine which policy should cover which part of it. It is important to provide inventory and photos of the property, both before and after the flooding. Ultimately, NFIP will reduce the check to pay for flood-related losses.