Unlike the standard homeowner’s
insurance policy, flood insurance covers losses and damages to your property
caused by flooding. Such coverage usually includes compensation for structural
damage, clean up, and other related significant costs. Some policies will
even cover damage to the contents of your home, such as furniture, collectibles,
clothing, jewelry and artwork. Buying flood insurance is a smart decision
as it will protect your home, your business, and your family from the
devastating circumstances of a flood. A flood insurance program will offer
fast assistance when you need it.
three forms of policies
Here are some of the
benefits of flood insurance by Flood
Smart, a FEMA site dedicated to the National Flood
- Flood insurance compensation
for all covered losses
- Relatively inexpensive coverage
- Full reimbursement of flood
- No repayment
- Backed by the Federal government.
- Quick request processing
Most homeowners fail to realize that everyone lives in a possible flood
zone. Floods can occur anywhere and anytime. Because floods are unpredictable
and uncontrollable acts of nature, most homeowner’s insurance policies
do not cover flood damage. Without it being a deluge, even an inch of
water can cause extensive, expensive damage to your property.
Federal disaster assistance
Federal disaster assistance in the United States usually consists of a
loan that must be paid back with interest. On the other hand, being part
of a flood insurance program, which usually costs a few hundred dollars
a year depending on where you live, will save you a significant amount
of money in times of need, and provide you with better protection.
National Flood Insurance
The National Flood Insurance Program (NFIP) allows property owners in
participating communities to purchase insurance protection against losses
from flooding. This insurance is designed to provide an alternative to
Federal disaster assistance and will help meet the growing costs of repairing
damage to buildings and their contents. Communities participate in the
NFIP based on agreements with the Federal Government. Contact your local
government office to find out whether your community is part of the National
Flood Insurance Program, and get information on how to join. The program
benefits entire communities by helping to quickly restore their livelihood.
Discounts on insurance premiums are available for people living in low
to moderate-risk zones. The average flood insurance premium for the maximum
of $250,000 in coverage in 2010 was $395 per year, with some policies
starting as low as $129 per year.
Remember that a policy does
not take effect until 30 days after your purchase. So, it is futile to
rush out to buy flood insurance coverage the moment the weather forecast
announces a flood alert in your area. Whether you opt for a flood insurance
premium or a flood insurance program, a few dollars a month will give
you peace of mind should the unthinkable ever happen.