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Here’s What You Must Know Before Buying Flood Insurance in 2022

flood insurance companies in Florida

You need flood insurance in Florida, even when it is not mandatory as per the state laws. After all, the entire state is at flood risk in varying capacities. But how do you the best of flood companies in Florida? What are the factors that can determine the best insurance plan and company for you?

Before we get started, know this: there are two kinds of flood insurance policies you can buy:

  • National Flood Insurance Program (NFIP): A federal policy backed by FEMA, which makes it secure and steady through all times. Many FEMA-approved companies offer NFIP plans in their original form. From 1968 until a few years ago, NFIP was the most preferred insurance policy for everyone in Florida.
  • Private Flood Insurance Plans: NFIP policies also work as the benchmark for plans offered by private insurance companies. However, those plans are bound by certain restrictions, many of which don’t apply to private insurance policies. These plans are funded by the insurance buyers; so, the larger the company the more secure your investment will be.

Risk Rating 2.0 Effect

Expect new insurance policies to cost much more than what they used to be until October 2021. That includes both private and federal plans, which will see an increased premium as soon as the Risk Rating 2.0 comes into complete effect. So, basically, you will be asked to pay more for the existing insurance plans.

This premium increase is mostly happening due to the increase in the number of flood insurance claims filed annually. The flood risk is rising by the year, which means charging any less premium than the new quotes will mean suicide for the insurance company.

However, the update primarily focuses on the new insurance policy buyers. The existing insurance buyers might have a bit more time than that. So, if you haven’t renewed your insurance policy yet, it’s time to do it now. Delaying it any further could mean that you will also need to pay a higher insurance premium like the new customers.

Options for New Flood Insurance Policy Buyers

All is not lost even if you haven’t bought a flood insurance policy yet.

With a federal policy, you will certainly be expected to pay a higher premium for your policy. The benefits will be capped just as before.

However, with a few private insurance companies, you can expect a bit more leverage even now. So, all you have to do is look for the best flood insurance companies in Florida which can customize your insurance plan as you want. Of course, the premium will be higher than that for existing customers, but you will certainly have an edge with some of the best benefits being covered under your plan.

You can look forward to many insurance benefits available only under a private flood insurance policy, such as:

  • Coverage limit in the excess of 500,000, as compared to the capped limits of $250,000 for damage to house’s structure and another $100,000 for personal item losses
  • Shorter kick-in period, as compared to 30-day policy kick-in timeline for NFIP plans
  • Coverage of areas outside your house within the same policy; NFIP does not cover those areas
  • Access to additional funds for securing an alternate accommodation while your house is being repaired; NFIP does not provide that either
  • Option to customize your insurance policy on certain aspects; NFIP does not permit that
  • Lesser paperwork and faster disbursal of the claim as promised

Do note that flood insurance plans for different insurance companies don’t cover everything. So, you must choose the company that covers the most of them and can fit your requirement best. You can always ask your insurer in advance about the scope of customizing your policy even before you buy it. Rest assured; you will definitely get an assurance of complete peace of mind with a comprehensive flood insurance policy in Florida.

Call your nearest flood insurance companies to get a free quote for their plans and packages today!

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