Understanding Flood Insurance
Flood insurance safeguards you from physical and financial wreckage caused by a flood. You may not feel like it floods much in your area, but even a few inches of flooding is enough to cause some serious damage resulting in thousands of dollars for repairs coming out of your wallet. A flood insurance policy, however, can protect you. There are two types of policies available for you based on your location and flood history:
- Standard Flood
If you live in a community that takes part in the NFIP, your building can be protected by a Standard Flood insurance policy. If you choose to purchase this policy, you must apply for building coverage and contents coverage separately.
- Preferred Risk
If your home or business is in a low-risk flood area, you could qualify for a low cost preferred risk policy. If you are affected by a flood, this policy will protect your home and its contents. These policies include dwelling and contents coverage with costs starting at around $225 per year.
What is Covered Under Flood Insurance?
Flood coverage protects against losses that may result from heavy rain falls, blocked drainage systems, and more. Keep in mind that homeowners insurance does not cover flood damage; this coverage is often times provided by the National Flood Insurance Program which is administered by FEMA.