Did you know that just one inch of water can result in thousands of dollars in damage to your home or business? Even if you don't live in a high-risk flooding area, your property may still fall victim to flood damage.
Flood insurance offers specialized insurance coverage against property loss and damage caused by flooding. It covers damages not included in homeowner's insurance. Contrary to common misperception, regular homeowner insurance policies are not enough to financially recover from flooding that your property experiences.
Here, we'll provide you with everything you need to know about purchasing flood insurance policies to keep your home or business safe. Our experts will help you compare plans and choose one that will give you peace of mind throughout the year.
Is All Flood Insurance through FEMA?
FEMA, or the Federal Emergency Management Association, is a well-established agency backed by the federal government of the United States. It is a part of the U.S Department of Homeland Security. FEMA administers the NFIP (National Flood Insurance Program) and various types of disaster assistance.
FEMA works with around 90 private insurance companies to provide both property renters and owners with flood insurance. You can find a flood policy through the FEMA official website. The federal government decides the rates, so you won't notice any drastic fluctuations between different insurance agents or companies who are participants in the National Flood Insurance Program.
You cannot purchase insurance directly from the National Flood Insurance Program. Instead, you have to go through an insurer or agent who participates in the NFIP.
Some companies offer policies that are not a part of an insurance program NFIP. These coverage options tend to be viewed as riskier, as they lack federal backing. A majority of insurance programs in the U.S. are available through the National Flood Insurance Program and backed by FEMA and the Department of Homeland Security.
What Does Flood Insurance Cost?
The cost of a flood insurance program will vary for every property owner. According to FEMA's official website, the average flood insurance plan costs around $700 per year. You can expect to pay significantly more or less depending on factors such as:
- Your building's level of flood risk
- The date your home or business was built
- The type of construction your building features
Rates will not vary from one insurance agent to another. However, you need to choose your insurer wisely. If you ever need to file a claim, you want to work with a company that has a positive reputation and offers superior customer service. Here at Beacon Point, we will help you find a comprehensive insurance plan and an agent with the right company. Call us today to get started!
What Is Covered Under Flood Insurance Policy?
Flood insurance covers any damage that occurs directly as a result of flooding. In legal terms, a flood is an excess of water on an area of land. The water has to affect two or more properties or cover more than two acres of land.
What a national flood insurance policy covers will depend on the plan you have. Agents who participate in the flood insurance program NFIP offer two types of coverage: building coverage and contents-only coverage.
Building coverage protects the following elements of your home or business:
- Water heaters and furnaces
- Plumbing and electrical systems
- Cooking stoves, refrigerators, and dishwashers
- Permanent carpeting
- Window blinds
- Detached garages
- Solar energy equipment
- Well water tanks and pumps
- Fuel tanks
- Permanently-installed bookcases, paneling, and cabinets
- Anchorage systems
- Foundation walls
Contents-only coverage will protect the following items:
- Valuable items like fur and artwork
- Carpet that is not a part of the building
- Microwave ovens
- Portable and window air conditioners
- Washers and dryers
- Personal belongings like clothing, furniture, and electronics
You also can get bundled flood insurance coverage, which protects both your building and personal belongings. For more information, reach out to our team today. We will put you in contact with a qualified agent who will help you compare quality national flood insurance plans.
How Long Does It Take to Get Flood Insurance?
A national flood insurance plan will go into effect 30 days after purchase. However, you should allow for some leeway in case of process delays due to factors outside of your control.
In some instances, your policy will go into effect sooner. A few of these cases include:
- Your home or business is in a high-risk Special Flood Hazard Area: When you purchase flood insurance within 13 months of this designation, your flood insurance plan will experience a one-day waiting period.
- You're making, increasing, renewing, or extending your mortgage loan: If you purchase flood insurance alongside any of these actions, you will not experience a waiting period.
- You choose additional protection as an option on your renewal policy: When you make this move, you won't have to wait for your flood insurance policy to take effect.
Your particular circumstances may affect how long it takes for your flood insurance plan to go into effect. Don't hesitate to get in touch with one of our insurance agents today for more information. We can determine if you are in a flood zone and the best options for your situation. From there, we will ensure you get the best flood insurance policy that meets your unique needs.
How Much Does High-Risk Flood Insurance Cost?
Some property owners find the cost to be a significant deterrent from purchasing flood insurance. However, those with buildings in high-risk flood areas are often required to have flood insurance. You can find this information by checking a flood map to see if your property falls into one of these zones.
If you live in a high risk zip code and have a government-backed mortgage, you need to purchase a flood insurance plan. It will also be required if you have received any form of federal disaster aid. This aid includes low-interest disaster loans from the U.S. Small Business Administration and grants from FEMA. If you fail to purchase a policy as a property owner in a high risk flood area, you will not be eligible for future federal disaster aid.
As mentioned earlier, the cost of high-risk flood insurance will vary greatly. The cost will depend on your home's location, size, and construction. The deductible you have will also determine how much you will be paying every year.
Before you rule out a flood insurance policy for your home or business, contact an agent at Beacon Point today for more information. We'll help you obtain an adequate plan that fulfills your legal obligations and fits into your budget.
How Much Flood Insurance Coverage Do I Need?
Not every insurance program offers the same coverage options. Depending on your circumstances, you may benefit from a different level of insurance flood policy than your neighbors.
If you are required to have flood insurance, you need to make sure your plan meets the minimum requirements. However, you may want to consider expanding your policy so that it is equal to the value of your home and possessions. This extension ensures you won't experience a significant financial blow in case of a flood.
Keep in mind that a flood insurance program NFIP will only cover up to $250,000 for your building and $100,000 for personal property. If you choose to go through a private insurance company, they will be able to provide higher limits. However, private insurers do not have federal backing, so there is more risk associated with them.
Contact Beacon Point Today
If you are looking for a national flood insurance program, be sure to get in touch with an agent today. Our team at Beacon Point is ready to provide you with all of the information you need to find the ideal company and policy.