Depending on where you live, you have to plan for natural disasters. One of the most common and prevalent disasters that can strike is flooding. Whether it’s heavy rains, a storm, or something more severe like a hurricane, it’s imperative that you protect your home with flood insurance coverage. At Findinsurance.com, we make it easy to connect with the best flood insurance companies to provide peace of mind when water gets into your home.
National Flood Insurance Program (NFIP)
Did you know that FEMA has a flood insurance program that helps homeowners get the coverage they need? While this plan is not offered everywhere, most communities – particularly those affected by floods on a regular basis – will qualify for NFIP protection. If you’re not familiar with this system, it enables you to buy flood insurance for your property. Before this program was implemented, most homeowners were unable to get flood insurance coverage, as carriers didn’t want to pay for damages. Here’s how it works:
The NFIP doesn’t provide you with flood insurance coverage directly. Instead, you have to contact participating flood insurance companies to get a policy that protects your property. However, if you live in an area that is prone to flooding on a consistent basis, you can qualify for subsidies to help pay your premiums and to cover the cost of repairs and renovations.
When talking with an insurance agent, one thing to look at is a flood area map. FEMA has created a ranking system that shows areas that are at a higher risk of flooding. If your property is in one of those locations, you should be able to get a reduced premium rate. Also, if you are in a flood-prone area, lenders may require you to get flood insurance coverage no matter what.
What Affects the Cost?
There are several factors that both flood insurance companies and the NFIP consider when setting up your coverage. These can include:
- The age of the home
- The number of floors
- Building occupancy
- Base flood elevation in relation to the lowest floor
- Location of building contents (i.e., possessions and electrical systems)
- Flood risk (based on map)
You will want to talk to your agent to make sure that your property insurance policy will not only cover floods, but also qualify for any subsidies.
Building vs. Contents Coverage
One thing that most people don’t know about flood insurance is that it usually only covers damage to the physical structure. For example, if the foundation is worn down by consistent flooding, the insurance will pay to have it restored. However, your possessions are not covered by a standard building policy. Not only that, but internal systems like electricity and fixtures are also not protected.
Because of this, you will have to add contents coverage to your policy. This will ensure that anything that is damaged by a flood, including items like carpeting or wiring, will be protected. You don’t want to wait until after a flood occurs to find out what’s covered, so it’s imperative that you discuss these things when talking with your agent.
Elevating Your Home
One element of the NFIP’s coverage system is that you may be able to pay for your home to be elevated. Because you can spend a lot in premiums for homeowner’s insurance coverage, you may want to save yourself a bundle in the long run by uplifting your home. According to the NFIP, every foot you raise it can reduce your premiums by up to 30% annually.
Buy Flood Insurance Coverage Today
At Findinsurance.com, we make it easy to find the flood insurance coverage you need to protect your home and your family. While it can be frustrating to have your property flooded on a regular basis, knowing that you’re protected will provide you with peace of mind.