7 Amazing Facts About Flood Insurance You Need to Know
You will be amazed by some of the interesting facts about flood insurance you will learn from this article today.
The requirements needed to insure yourself against a flood is a little different from what you get from other policies.
According to a report about natural disasters in the U.S. published by Statista, in 2019, there were a total of 92 fatalities reported due to flash floods and river floods in the United States.
The case is not different in the United Kingdom too. Every year, about 2.4 million UK properties are at risk from fluvial (river) and coastal flooding, while a further 2.8 million are susceptible to surface water – or pluvial.
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If you live in an area that is at risk of flooding, you will be doing yourself a great disservice if you fail to buy an affordable flood insurance policy.
It will be a grave mistake to think that your homeowners and renters insurance will also take care of flooding.
What is Flood Insurance?
Flood insurance is a type of property insurance that covers your home and its contents against water damage, typically caused by flooding after heavy rainfall. Most facts about flood insurance are not easily sorted out.
Here are some interesting flood insurance facts you would like to know before getting special coverage to protect your finances.
- In the United States of America for instance, floods are not covered under homeowners and renters policies. Only a specific flood insurance policy will cover home flood-related losses.
- The majority of 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 floodplain management regulations under the NFIP—and many communities participate in the program.
- Direct physical losses caused as a result of floods and losses emanating from flood-related erosion caused by waves or high current water are covered by flood insurance.
- 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.
- The maximum flood insurance coverage amount is $250,000 for the structure of the home and $100,000 for the contents of the home. (“Excess” coverage over and above the maximums that are available from NFIP is offered by private insurers.)
- Flood losses for cars are covered under the optional, comprehensive portion of a standard automobile insurance policy.
- Commercial flood insurance is available from the NFIP; it provides up to $500,000 of coverage for your building and up to $500,000 for its contents. You can also purchase what’s called “umbrella” insurance coverage to rebuild properties valued above those limits.
If you live in an area that is at risk of flooding then you might need to shop around to find the best flood insurance company near you that is offering the coverage at a reasonable rate.
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You can compare flood insurance quotes online to be sure you are getting the best deal. Some insurers offer home insurance with flood cover if you sense that the area you bought your property is prone to flooding.
Which state has the cheapest flood insurance rate?
Louisiana and Texas are believed to be among the two flood-prone states that offer the most affordable NFIP coverage. To confirm this, you can check any of the comparison sites to see how reasonable their flood insurance quote is.
If your community participates in the National Flood Insurance Program (NFIP) you can reach out to your agent that is a part of the NFIP-Direct Program. Just like most insurers do, State Farm’s homeowners’ insurance policy doesn’t automatically cover you in the event of flooding.
Some other interesting facts about flood insurance include but not limited to the fact that USAA offers flood insurance through their renters’ insurance, Progressive’s flood insurance plan covers both the structure and foundation while the Geico flood insurance quote can only be gotten through the NFIP coverage.
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Which of these amazing facts about flood insurance fascinated you most?