3 Facts About Flood Insurance
Flood insurance is an important coverage for a risk exposure that is often misunderstood. No matter where you live, a flood can happen. In fact, the possibility of a flood-related occurrence has increased in recent years. Floods are becoming both more frequent and more severe.
If you’re looking for flood insurance Maitland FL, you should know that it is important to have coverage even if your area has experienced bouts of drought in the past. Below are three points to consider about flood insurance.
1. It’s Often Backed by the Government
Flood insurance is a stand-alone policy that is often backed by the government through the National Flood Insurance Program (or NFIP) and managed by FEMA. It is made available to the public through insurance companies.
Some insurance carriers may consider providing a flood policy outside of the NFIP, but it often requires utilizing reinsurance agreements and multiple insurance carriers to provide such coverage.
2. Flood Coverage Can Be Excluded Under Standard Policies
Many people do not realize flooding is typically excluded under standard policies of insurance such as homeowners, renters or condominium insurance policies. While these policies cover some water-related events (depending on if the water damage was first caused by a covered peril), these policies typically will exclude flood.
According to FEMA, a single flood can cost a homeowner over $20,000 in damages.
3. It Can Be a Requirement for Certain Homeowners
Flood insurance is often a requirement if you purchase a home in a specific flood-prone area that has been designated as high-risk. Even though flood insurance is not required of everyone outside of specific high-risk areas, it can provide peace of mind that there is coverage in place.
Flood insurance is an important consideration for all but especially for those in high-risk areas. A potential buyer should consult with a licensed insurance professional to discuss their exposure to this risk.
