Flood insurance provides protection for destruction and financial devastation caused by water. Although it may not seem like much, even a few inches of water can cause serious damage; resulting in thousands of dollars in repair and restoration costs. Homeowner’s insurance does NOT cover floods … and most people usually don’t find that out until it’s too late. Purchasing a flood insurance policy through Onmarket Insurance Associates will protect you.
Standard Flood Insurance Policies
If you live in a community that participates in the NFIP, your building and its contents can be covered by a standard flood insurance policy. The National Flood Insurance Program (NFIP) was established by the Federal Government to help communities who “voluntarily participate in the NIFP by adopting and enforcing floodplain management ordinances to reduce future flood damage.” To be considered a flood, the waters must cover at least two acres or affect at least two properties. You must apply for building coverage and contents coverage separately if you choose to invest in a standard flood insurance policy.
Preferred Risk Flood Insurance Policies
If your home is in a low or moderate risk zone, your building may qualify for a low-cost preferred risk policy. While you aren’t required to purchase flood insurance in low-to-moderate risk areas, a preferred risk policy will protect your home and its contents if you are affected by a small flood or a larger flood that has extended into your low-risk area and can plug in the gaps of water exclusions under a homeowner’s policy. In truth, many flood insurance claims occur in low-to-moderate risk areas.
To learn some of the key terms for insuring the place you live, view the vocab list on our Homeowners Insurance page.
What Factors Do We Need to Consider Here?
A maximum of $250,000 of building coverage is available for single-family residential structures; $250,000 per unit for multifamily residents, with a limit on all residential buildings of $100,000, which is also available for renters.
Does this Policy Cover Inside and Outside of My Home?
Flood coverage offers protection against losses that result from heavy and lengthy rain falls, storm surges, blocked storm drainage systems, snow melts, surface water, etc.
If I have Renters Insurance, is this Policy Necessary as well?
Not in most cases. This is something you would want to consider when you own all or part of your residents and would be liable in the event of an approved loss.