Sun. Jul 25th, 2021

Buying Flood Insurance in Florida – What You Need to Know

Buying Flood Insurance in Florida
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Regardless of whether you are mandated to do it or not, everyone should have a flood insurance plan in Florida. This plan is more than valuable than what you may think. Also, contrary to what many people believe, it is not part of a homeowner’s insurance policy. Flood insurance is a separate policy that only provides financial coverage in an event of losses caused by flooding.

Choosing the Right Policy

In Florida, you get to make a choice between two options:

National Flood Insurance Program (NFIP):

A federal program backed by the Federal Emergency Management Agency (FEMA) that provides optimum coverage to everyone living in Florida. The plan is very affordable and offers coverage up to $350,000 ($250,000 for home damage, $100,000 for other losses).

Private Flood Insurance Companies:

Many insurance companies in Florida offer different customizable plans as per individual needs. Their plans are very similar to the ones offered by NFIP, with the added benefit to customize them and pay a premium only for what you want covered. Next, you need to assess what your requirement really is. Flood insurance is supposed to protect your home building and everything that’s inside it, with few exceptions. If that’s okay with you, you can go ahead and buy the policy that offers you the best deal. If you want coverage for the exclusions too, you can go for a private flood insurance policy that has the provision to do the same.

If you want to exclude a few default inclusions, you can go for private food insurance where that can be done without much trouble. This option is specifically popular since it gives you the option to pay less premium after making those exclusions. Your premium value can go further down if you need coverage of a lesser value. The location of your home, its age, and maintenance done over the years can also affect the insurance premium.

Never Take the Flood Risk Lightly

According to a report, over 3.5 million people in Florida are at risk of coastal floods. This number will go up by another million in the coming years. If you live in a zone in Florida that hasn’t witnessed floods yet, don’t rest easy. The threat is always there. Even an inch of flooding could cause damages of hundreds of dollars, if not higher. So, if you haven’t considered flood insurance yet, do it right away.

Those who are buying new properties in Florida on a mortgage have to furnish the flood insurance before their house gets financed. This is keeping in line with the government guidelines that acknowledge the threat of flood around the state. So, it’s all real and should not be taken lightly.

Flood Insurance Isn’t That Costly

In fact, you can buy a flood insurance policy for as low as a couple of hundred dollars. You can even get easy installments on them if that option is available. Of course, the premium will depend upon where you live. Discuss your requirement with an insurance company whose experts should be able to help with some useful details. Contact your nearest private flood insurance company in Florida for a free quote right away.