Those who have been victimized by severe flooding can attest to the devastation that one can be left with in the aftermath of such a tragedy. This devastation will often include homes, businesses and all that lies within. Flood insurance protects both structures and the personal contents that lie within. This coverage is available for those who own businesses, homes and condos, as well as residential and commercial renters. If you happen to reside in a zone that is designated as high risk for flooding, it is vital to obtain good flood insurance.
Who Needs It
Flood insurance is tailor made for those who reside in flood zones or areas where the likelihood of damage from mudslides, broken water mains and severe storms is high. Generally, these types of policies are divided into two designations, moderate-to-low risk, and high-risk categories.
People who live in the moderate-to-low risk zones can purchase coverage for a relatively low price. High-risk areas are covered more comprehensively and include more protection for the contents and the buildings themselves.
Insurance premiums are determined by several things, including the year the home was built and whether it is located in a flood zone. Other determining factors include the number of stories, the contents covered, etc. Premiums are also determined by the level of coverage chosen and the amount of the deductible. If you carry a mortgage and also reside in a high-risk flood area, lenders will mandate that you obtain this insurance coverage to protect their investment, as well.
It’s important to know exactly what each policy covers. Protection for basements, for instance, can be limited along with any structures outside, such as swimming pools, sheds and so on. These things would often need to be specifically covered as policy add-ons.
The government provides coverage from FEMA, which is the national flood insurance provider. Also, several private companies provide this type of coverage. The law mandates that private insurance agents be members of the National Flood Insurance Program (NFIP) in order to offer this specialized coverage. These agencies strive to provide financial help to those who are the victims of flood damage.
A big plus in having this coverage is the knowledge that if a flood strikes, you will not be left helpless. Good flood protection protects you from suffering the consequences of extreme financial loss due to a flooding disaster. Most of all, it provides peace of mind for your and your family.