Flood insurance is a separate policy intended to cover losses from floods and flash floods. This type of coverage isn’t included in a typical homeowner or business policy. It can be purchased from the National Flood Insurance Program (NFIP) which is government-sponsored or through a private insurance agent. Buying the policy from a licensed insurance agent may be your preference because the agent can help you with any questions or concerns. The NFIP is funded by the policy holder’s premiums and gets some subsidies. They are responsible for underwriting policies and managing the program.
The policy is for any homeowner or business owner that wants to be protected from loss due to a flood. It isn’t just for people that live on floodplains. Every state in the United States has experienced flash flooding at one time, so having this type of policy is important. Property loss due to flood damage can cost thousands of dollars. Since it’s not covered by homeowner’s insurance, it would be extremely difficult for the victim of a flood to rebuild and recover from such huge losses.
You can get this insurance to cover many kinds of dwellings like your house, mobile home, condo, or business. There are three kinds of coverage including building, contents, and replacement cost coverage. The building coverage is for the structure itself while contents coverage is for what was inside your home such as furniture, clothing, and electronics. Replacement coverage is limited to single-family dwellings only but reimburses you for rebuilding your house. Replacement and contents coverage may not be included in all flood policies, so it’s a good idea to discuss this with your agent to ensure adequate coverage.
The benefits of having flood coverage are many, but especially having peace of mind knowing that if the worst happens you are covered. Some policies may pay for preventative items like sandbags if your location is in imminent danger of flooding. You’ll rest easy knowing that if a flood does hit your property that you’ll be made whole again.
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