Mon. Oct 26th, 2020

How to Choose the Right Flood Insurance Policy – Ask These Questions First

How to Choose the Right Flood Insurance Policy

It’s no secret that states located along US coastlines are more vulnerable to floods that the rest. Among them, the state of Florida happens to be worst-hit by floods every year. With its 1,300 miles of coastline, average sea level elevation of about 6 feet, and a population of over 21 million, the risk factor is indeed high all across the state!

It isn’t uncommon to assume that a homeowner’s insurance policy will cover everything you own. It does too, just not against floods. This means you have to buy a separate flood insurance policy that specifically covers damages caused by floods, and floods only. If you want to find out the best flood insurance companies in Florida, you must ask them the following questions:

What is the Average Cost of Flood Insurance in Florida?

On average, the people of Florida pay about $563 per year for flood insurance. The final price can depend upon the area where you live, the condition of your home, and the insurance company you choose for the policy.

What is the Scope of Flood Insurance Cover?

By default, everyone who lives in flood-prone areas can benefit from government-funded flood insurance. The National Flood Insurance Program (NFIP) is administered by the Flood Emergency Management Agency (FEMA) across the country. Those who do not come under the purview of NFIP can buy an equally effective private flood insurance plan. You can also buy two plans together to get maximum coverage for your flood-related losses.

Is It Worth Buying Flood Insurance?

Floods can cause damages that are beyond anyone’s comprehension in advance. You could be amongst a few lucky ones who don’t get affected much by floods. You could be someone who could take the most damage in your entire locality. Either way, buying flood insurance secures you from any financial damage caused to your property, valuables, or anything else you have at home.

Are There Separate Plans for Homeowners and Those Living on Rent?

Homeowners flood insurance covers for every bit of damage to property as well as every possession you have inside it. However, if you have taken the house on rent, its flood insurance benefits will not be applicable for your belongings. You will have to separately buy a flood insurance policy to cover your losses. Despite being a tenant, your policy can cover for the damages caused to the property.

How Much Time Does It Take for Flood Insurance to Come into Effect?

A flood insurance policy typically comes into effect after 30 days of purchasing it. For some insurers, it can be longer. You can check with your flood insurance company about this before buying their plan.

Both homes and businesses can take advantage of the benefits of a flood insurance policy. You must always aim for the best policy to cover your losses. If needed, go for the dual coverage of NFIP and private insurance policy. Speak to your nearest insurance expert today for more details.