Is Flood Insurance Included in Homeowners Insurance?
Flood Insurance Policy: How to Get the Right Kind of Coverage?
The federal government and many private companies often sell policies associated with flood insurance. These homeowners and renters policies are designed to be a complete package that may or may not focus on providing maximum coverage due to the damage caused by the flood. Rais Insurance is here to help you know the basics related to owning a policy.
What are the Different Types of Flood Insurance Policies Available?
Most buyers have this regular question. Is flood insurance included in homeowners insurance? The answer is rather complicated because basic homeowners’ policy will not include flood coverage whereas other bundled policies will include it yet the coverage may not be as high as what you get when you purchase an individual policy.
The National Flood Insurance Program can be purchased through an insurance company or an agent. The maximum coverage limit is capped at $250,000 and it is usually ideal for anyone living in a moderate risk zone which is not prone to disasters on a massive scale. Besides, the government funds will be distributed evenly among different homeowners in the locality. If you are looking for a more personalized solution, this is not for you.
The private flood insurance policy provided by a reputed insurer will provide varying sum based on the policy you have opted for. The insurance amount can go above $250,000 and you can choose a policy based on the investment you made in your home, as more expensive the construction is, the higher the policy should be.
Keep in mind, a flood insurance policy is necessary for a red zone area, but in the other areas also, you should not hesitate to secure your home. The insurance can cover damages caused by heavy rainfall, water logging or if you happen to live in a locality where violent storms could lead to floods.
How to Buy Flood Insurance?
A private company will approve your claim within two weeks or so whereas a federal agency could take a long time to approve it. You have complete control over the policy you choose. There are options to opt for NFIP backed policies, find cheap flood insurance or go for higher plans that safeguard your investment in case of a natural disaster. But, be sure to identify the flood insurance amount depending on your area, household items you want to be insured, and the premium you will be required to pay. Ask your agent to help you, and remember to regularly renew or update your policy.
Stats show that property owners may have to spend close to $25,000 if an inch of water enters their premises. Hence, you need to buy a policy from a trusted agent such as Rais Insurance. We are registered and all the policies offered by us are backed by the National Flood Insurance Program (NFIP). We can help you buy the best insurance policy for home insurance for flood areas by first gauging your needs and then choosing a policy with comprehensive coverage. You can depend on us to help educate on the benefits of insurance, and how to compare coverage and premiums costs.