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How Flood Insurance Secures You from Incurring Financial Losses in Florida

How Flood Insurance Secures You from Incurring Financial Losses in Florida

Did you know that flood coverage isn’t included in your homeowners’ insurance policy? Since the flood risk is very much real in Florida, you need a separate flood insurance policy to secure your belongings. The cost of flood insurance in Florida isn’t too expensive right now, but it may soon increase to meet the rising insurance expenses.

What Does This Mean for You?

This means if you live anywhere in Florida and haven’t bought flood insurance yet, you should buy one as soon as possible. Your policy will cover:

  • Any kind of structural damage to your property
  • Losses caused to your personal belongings

National Flood Insurance Program

The National Flood Insurance Program (NFIP) is a federal program managed by Federal Emergency Management Agency (FEMA). For the longest time, NFIP was the only plan available for recovering flood damages to every US citizen. While the plan wasn’t enough it still assured people of recovering most of what they lost due to floods. For many, the plan was the savior they needed.

This was until the private insurance companies began selling their policies as well.

Private Flood Insurance Plans

Private flood insurance policies are everything that NFIP offers, and more. Since they have to adhere to the federal regulations, the template for flood insurance coverage is the same for both private flood insurance and NFIP.

At present, the average cost of flood insurance in Florida is around $562. This is about to steeply rise very soon, though.

The differences between the two are the options to customize most of the private flood insurance plans to suit your needs. This way, you can set what insurance premium you wish to pay for flood insurance coverage by adding or removing certain aspects of a regular policy.

Is Flood Insurance the Same for Everyone

Definitely not. The flood insurance premium value is set based upon the threat of flooding in a particular area. You can use FEMA’s flood map to determine how much risk you are in and what premium you need to pay for flood insurance.

Depending upon where you are located, you could look to pay anywhere between $200 and $2,000 as an annual insurance premium for a standard flood insurance coverage.

You may be asked to pay certain surcharges too, if:

  • You have rented out your property
  • You have been living in your new home for less than six months
  • You are not living in your primary house

Is Flood Insurance Mandatory for All?

The state of Florida does not require anyone to buy flood insurance. However, if you really value your house and everything in it, you should buy a good flood insurance policy. The entire state of Florida is a flood risk zone, so there is no way you are ever getting away from the flood.

Even if it has never flooded before in your area, you must not take it lightly. As many as 20% of annual flood insurance claims are filed by people who live in low flood-risk zones. There are several more living in those areas who didn’t have flood insurance and so had to bear the losses themselves.

Refer to FEMA’s current flood map to understand the enduring risk better.

If you are going to buy one on a mortgage in the state, the mortgage companies will want you to buy flood insurance before they approve your application. This secures not just you but also them from incurring any financial damage due to floods.

Ensure that you buy the best plan by checking out the available flood insurance plans in your area. Compare them with the kind of coverage you seek before making your decision. Get a free flood insurance quote from your nearest flood insurance company today to get started.

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