Flooding is not an included coverage in most homeowner’s policies. Many homeowners find this out after rising waters from drainage ditches, lakes, or rivers have come into their homes and damaged the structure and their personal property.
The National Flood Insurance Program is flood coverage that is federally sponsored. It is coverage that will take care of repairs, rebuilding, and replacement in the event of a flood. This federal product is offered through local insurance agents and is a primary flood coverage source in the United States.
Unfortunately, rate increases may be on the horizon nationally, which is why private flood coverage protection is being explored in many areas of the country. Florida, due to its susceptibility to flooding due to hurricanes, etc., is particularly looking at this option. It is not certain, however, if the mortgage companies will accept the private coverage.
If you live near a large body of water, the national policy of flood insurance can be a very good investment. The risk of flooding is much higher when you live near water, and the repercussions of not having this type of insurance can be immeasurable. This is why the National Flood Insurance Program was conceived to ensure that people are covered in the event of this type of catastrophe.
For the insurance coverage to payout, the flood has to be due to rising water. While a river or lake overflowing is considered a flood, a blocked storm drain is not. Understanding what is or is not covered is essential to be sure that there are no surprises in the event of home damage.
Full coverage can help to ensure that your home or building is protected in the case of a flood. An insurance agent can give you the advice that you need to help you determine what type of coverage that you need. In addition, they can give you a cost estimate, which can make all the difference in your decision-making.
From covering the damage to your structure to paying for damaged personal property to paying for temporary housing, flood insurance can be well worth the cost.