Why Flooding Insurance Is Important For Homeowners and Businesses Alike

Sudden and unfavourable circumstances like accidents can happen at the spur of a moment with anybody. The pitfalls of life that strike one’s face without any prior intimation are the ones that are most difficult and burdensome to deal with. An insurance policy acts as a helping aid during such testing times. Although any kind of insurance money does not have the power to bring back what is lost, nevertheless, it does have the capacity to help out in minimizing the losses by providing new options of regeneration.

Insurance Policies for Relief against Natural Disasters

Most people are aware of the facility of having insurance policies against accidents, loss of family members, and other relevant reasons alike. However, the common masses are most of the times unaware of special insurance policies that can be used to claim help during crisis occurring due to natural disasters. Natural disasters are not in the control of man, and hence it is generally believed that losses occurring due to them cannot be claimed under any insurance policy. The converse is actually the truth since the National Flood Insurance Program (NFIP) is a unique insurance policy that covers losses occurring due to floods, and nearly 18,000 communities have opted to join the nationwide program.

Necessary Advice before Opting for NFIP

One of the hardest hitting natural disasters known to the history of mankind is flooding of high-risk areas. Here are a few important tips for claiming insurance for the same:

• Flood insurance is not sold directly by the federal government. It can be purchased from private insurance companies which are backed by the federal government.
• People residing in flood-prone areas need to be quick to buy insurance before it is too late and the flood takes its toll. This is due to the reason that it takes a 30 day period before the policy comes into effect. The only possibility when the 30-day waiting period gets a waiver is if the insurance is a necessity for loan upon closing.
• Residential property damages costing up to $250,000 can be claimed under a standard flood insurance and an extra $100,000 can be claimed if contents coverage is also claimed.
• For Business related property, a claim up to $500,000 for the building and additional $500,000 for contents is possible.

5 facts related to flood insurance policy, but unknown to most of the beneficiaries

• All communities belonging to NFIP can claim insurance. People residing in Special Flood Hazards Area (SFHA) can avail the same at affordable rates.
• Flood insurance can be bought during a flood situation or just before it based on the weather forecasting reports.
• It is unwise to depend upon homeowner’s insurance to cover during floods. It is always better to have a separate flood policy.
• The flood insurance policy does not get nullified if the property has already been flooded in the past. One can still apply for the insurance.
• Residents of areas which are not covered under high risk zones can also apply for flood insurance with a moderate premium yearly payment. It is advisable to do so since floods can also be caused due to heavy torrential rains on occasion.