Do I Really Need Flood Insurance?

Flood Insurance Cooper CityJust because you reside in what’s thought of as a low risk flood area doesn’t mean you don’t need to own flood insurance. Owning a Flood policy is highly suggested. However, your lender could require you to have this coverage. In fact, if your loan is backed by the U.S. government, like the Federal Housing Administration and you reside in a Flood Zone you certainly should carry flood insurance.

Type of Flood Policy

There are two types of flood insurance policies offered by NFIP. The first may be a most well know policy, which carries a lower premium and is designed for those in low risk areas. There are policies in place for those in high risk areas and provide coverage for both the home and your belongings. NFIP can take into consideration the year your home was designed, how many individuals it can hold, number of floors, contents, where it’s settled in the flood zone and your deductible before deciding your premium.

What You Pay When You Get Flood Insurance

Flood insurance is not offered by your home insurance underwriter. Solely the NFIP can offer flood insurance. During this case, you pay a yearly premium.

Flood Insurance Policy Maximums

If you purchase flood insurance, you should understand that there are policy maximums in the event of a claim. For residential property, those maximums are $250,000 for the replacement of your home and $100,000 to replace any personal items. Such as home contents include clothing, electronics and appliances.

If you want to learn more about flood insurance or how you can get the flood insurance coverage to properly protect your home or personal belongings…just ask Mitch at AskMitch@MonaLisaInsurance.com