Posted On: July 19, 2019
After the hurricane season we had last year, and with the current hurricane season here now, it is essential that we discuss flood insurance. As we have seen so far this summer, the rain does not seem to want to stop. However, flood insurance is completely separate from homeowners’ insurance. It is important to look into getting flood insurance so you don’t have to worry about the possibility of flooding in your home.
But what exactly is flood insurance? Flood related losses are defined as being “caused by water traveling along or under the ground.” Flood insurance is mostly covered by the National Flood Insurance Program (NFIP), which is a part of the Federal Emergency Management Agency. The program’s activities are funded by the premiums and other fees paid by their policyholders, which is also supplemented by a relatively tiny amount of general funds to help pay for flood risk mapping. Homeowners, however, can get a policy with the NFIP or with a private insurer, in the event NFIP has too high of a premium on certain homes.
Americans all around the nation use flood insurance, especially in wet areas like Florida or other places prone to hurricanes or bad storms. Approximately 68% of the policyholders are single-family homes, and another 21% are condos.
You do not want to be stuck in a situation where flooding damages your home past repair. So be sure your home, in our hurricane-prone state, is insured. Remember, your home insurance does not include flood insurance and being residents in a state where it rains heavily, you will want to have it for the just in case scenarios. People in low flooding areas may not need flood insurance, but we recommend that people in Florida or near coastlines get the proper insurance.
What does flood insurance cover? With an NFIP policy, a homeowner can purchase coverage of $250,000 and the contents of a home up to $100,000. It does not cover costs associated with the “loss of use” of a home.
We here at SETCO like to keep you up to date with our blogs and the news we share in those blogs. Floods are no joke, and you should at least consider getting flood insurance if you do not already have it. However, we are not just here to keep you up to date on important news. We want you to know we have the safest closing process for your future home. We care about your closing process, and with the help of Qualia, we promise to be here every step of the way.