To Buy or Not to Buy Flood Insurance and From Which Company?

Flood Insurance Miami

According to the Federal Emergency Management Agency (FEMA), flooding causes devastating losses all around the country. In fact, it will not be wrong to say that most of the disasters occurring around the country are related to floods in some way or another. What many people also don’t realize is that flood insurance doesn’t come under their homeowners’ insurance. There are dedicated flood insurance companies in Florida that can help you choose a plan that fits your need. The real question is, how do you make your choice?

Buying Flood Insurance is a Smart Decision

Floods are bound to happen in Florida every year. That means if you live in the flood zone, you will be affected by the raging floods when the season arrives. The only protection you can choose to save yourself financially is flood insurance. The choice you get here will be between the government-sponsored NFIP (National Flood Insurance Program) and the private flood insurance. The former will have limited benefits but can be easily clubbed with the latter for higher compensation.

What You Can Do on Your Part

A few inches of water is enough to cause damages running into thousands of dollars to your home. To avoid that, you can do some construction work around your home. You can also elevate all electrical connections and items to a certain height, to save them from water damage. You must also keep a check on the drain system that should be able to drain out some of the floodwater from your house.

Buying Flood Insurance Saves You from Financial Loss

Despite all your efforts, the flood is bound to cause some damage to your home and belongings. You need to protect yourself in the event that your prized possessions get damaged because of the flood. If you have flood insurance, you can get it all repaired and replaced.

The value you get as compensation depends on the kind of insurance you buy. The options you have here are:

National Flood Insurance Program (NFIP):

NFIP is a federal program managed by FEMA. It works as an alternative insurance program that offers disaster assistance to affected people up to a certain value, at a lower premium. Over 5 million people currently benefit from this plan.

Private Insurance from a Reputable Company:

Not every household qualifies to benefit from NFIP. Also, those who live under the risk of incurring more damage than what NFIP can cover may not benefit much from it. They can instead buy insurance from a private player that offers more benefits and higher insurance disbursement, subject to applicable terms and conditions.

Many people often club the two plans to gain maximum benefit from them. But before doing that it is always advised that you speak with your insurance agent or broker and seek their opinion from it. They can explain if you need to club the two plans, or how a single policy should be enough to cover all your losses. Also, ensure that you buy your policy at least 30 days before you may actually seek a claim under it.