It was in 1968 that the United States Congress initiated the National Flood Insurance Program to reduce the consequent damage to private and commercial property. Available through insurance companies and insurance agencies, the coverage is administered and dictated by government laws and can protect the property owner from flood damage.
A standard homeowners insurance policy is intended to cover a one, two, three, or four-family residential building, as well as a single-family home.
A general property flood policy can insure five or more family residential buildings, as well as buildings that are not used as a residence.
A Residential Condominium Construction Association policy can insure a residential condominium association building.
This type of policy must incorporate two types of related coverage: building property and personal property, defined as the contents of your premises.
Three essential things about a related insurance policy
• Content coverage must be purchased regardless of building coverage.
• Flood insurance is not valued coverage, that is, it only covers actual damages up to the policy limit.
• Flood insurance does not offer guaranteed replacement cost coverage that is not subject to limits. Unique country flood insurance for damages up to the policy limit.
More things to understand
It is important to note that the government-run program provides special consideration when there are numerous flood claims filed by the same insured. Officially considered ‘severe repetitive losses’, where intervention may be justified to avoid future losses, these claims may result in an offer of a FEMA mitigation grant if applicable.
Grant acceptance is voluntary, but any policyholder who declines the opportunity for government-funded improvements that are designed to reduce the likelihood of flood damage to the property may be constrained by a 150 percent rate increase. of the fee charged for the property when the grant was offered.
Policyholders with severe repetitive loss properties may be eligible for the grant if the following conditions are met:
• 4 or more different insurance claim payments (including construction / content payments) have been issued and each of them exceeds $ 5,000
Gold
• A minimum of 2 different flood insurance construction claim payments have been issued that together are more than the current value of the property.
For more information on flood insurance and how a respective policy can be tailored to your individual needs, contact an experienced independent agency.