Answers to the most frequently asked questions about flood insurance
Posted: 05-06-11Category:Here are some answers to the most frequently asked questions about flood insurance: (1) Doesn’t My Homeowners Insurance Policy Cover Flooding? No. Flood damage is usually not covered by a homeowners insurance policy. Until recently, flood insurance was only available as a http://www.theessaymag.com/canada/ separate policy from the federal government via the National Flood Insurance Program (NFIP). (2) Am I Required To Carry Flood Insurance? Not necessarily. However, if you have a federally insured mortgage and live in a high-risk flood zone, the mortgage company will require flood insurance to secure your loan. Or, if you live in a high-risk flood zone and have received federal disaster assistance after a flood, you will be required to purchase and maintain flood insurance until your loan is paid off. In this case, if you don’t buy flood insurance and another flood damages your property, a request for federal disaster assistance could be denied. (3) I Live In A Low-Risk Flood Zone. Do I Really Need Flood Insurance? It’s a good idea to buy flood insurance even if you live in a low or moderate-risk area. Over 30 percent of all flood insurance claims come from areas with minimal flood risk. (Source: www.floodsmart.gov) (4) What Is The Risk of Flooding For My Home? What Do The Flood Zone Designations Mean? According to the Federal Emergency Management Agency (FEMA), the United States is divided into zones related to low, moderate or high levels of risk for flooding. You can obtain information about the http://www.socialmediaexaminer.com/wp-content/wptouch-data/debug/ flood zones from FEMA. To assess your home’s level of flood risk, contact your independent insurance agent or broker. (5) What types of flood insurance are available and how do I secure a policy for my home? Some insurance companies provide broad form flood insurance coverage. Alternatively, the NFIP provides coverage directly or through the “Write Your Own” program, where private insurers provide policy administration and claim services. An independent insurance agent or broker is one of the best sources of advice for your flood insurance planning.