The Importance of Flood Protection!
About 90% (Ninety percent) of natural disasters in the United States in one way or another involves Flooding. Flood damage can strike in low or moderate risk areas. Homeowners/ Commercial Building and Renters policies don’t cover Flood Loss! It is important to learn about Flood Coverage and your options when it comes to selecting the right coverage!
The risk of flood damage or loss
According to the Federal Emergency Management Agency (FEMA) floods—including inland flooding, flash floods and flooding from seasonal storms—occur in every region of the United States. In fact, 90 percent of all-natural disasters in the U.S. involve some type of flooding. This is something that most property owners oversee, and it is of great concern.
When moving into a new home, apartment or business location, ask your Insurance Professional, Lender, Realtor, your local officials about the location and whether or not it has been known to flood. The National Flood Insurance Program (NFIP) can provide flood risk information on your area.
20 percent of all flood claims are filed in low to moderate flood risk areas. That means, you should be covered even in these areas and know what insurance options you have and obtain adequate and affordable coverage. Most new homeowners will not take this cost into consideration when purchasing a new home. If you need a Real Estate Professional Please contact ORION Real Estate & Finance LLC. www.expertrealtoragents.com or email email@example.com and we will get you everything you need to make the best decision.
The Basics of Flood Insurance
Flood Insurance is a little different than other insurance programs.
- Floods may not be covered by your homeowner’s insurance. Some carriers, very few, will have a flood insurance rider available. Please ask your insurance agent about this or simply contact us at www.expertrealtoragents.com, firstname.lastname@example.org or call 575-517-0316 for answers about our carrier’s flood insurance rider options. Renters Insurance does not cover flood damage either. Only a specific flood insurance policy will cover home flood related losses.
- Most flood insurance is administered through the federal government. Homeowners, renters and businesses can purchase flood policies from an insurer under contract with FEMA. Federal flood insurance is available where the local government has adopted adequate flood plain management regulations under the NFIP and communities can participate. You can also purchase Private Flood Insurance that is also acceptable to lenders and offers various coverage and deductible options.
- Flood insurance covers direct physical losses from floods and losses resulting from flood related erosion caused by waves or currents of water exceeding anticipated cyclical levels and accompanied by a severe storm, flash flood, abnormal tide surge or a similar situation that results in flooding.
- Flood insurance coverage for the structure and contents of the home are sold separately. Buildings are covered for replacement cost, but coverage for personal property is available on an actual cash value basis only.
- Commercial flood insurance is available from the NFIP; You can also purchase what’s called “excess” insurance coverage to rebuild properties valued above those limits. This is also offered by Private Flood Insurance companies as well.
Purchasing flood insurance
When buying flood insurance, you should know that:
- It's easy to purchase – Federal flood insurance policies can be purchased directly from an insurance professional. Nearly 100 insurance companies write and service NFIP policies.
- It requires a waiting period – There is a 30-day waiting period before a flood insurance policy takes effect, so don’t wait until the last minute to purchase it.
- It can be augmented with "excess" insurance – The NFIP policy maximums are inadequate to fully cover some people's assets so a growing number of private insurers have begun offering excess flood policies, intended to provide water damage protection to homeowners over and above the coverage provided by the NFIP policies. Some private insurers are also starting to offer “first dollar” flood policies. Contact your expert insurance agents at ORION Insurance & Financial Services LLC to get started!