Things To Know About Flood Insurance

Things To Know About Flood Insurance

There are certain states which are prone to experiencing floods once or twice in a year. Several manmade mechanisms have definitely managed to curb th

There are certain states which are prone to experiencing floods once or twice in a year. Several manmade mechanisms have definitely managed to curb the menace that is caused by such natural disasters, however the total control of such flash floods is impossible. There are several reasons for the occurrence of flood- heavy spring rains, abnormal melting of snow in mountains due to global warming are to name a few.

Flood insurance helps you to stay covered even after a cataclysmic flood washes away all your resources. You never know what the situation is going to be after several days of continuous rain. Here are the different things you should know about flood insurance.

  • Flood insurance is essential and one should have such an insurance handy even if your property has not met with flood ever. Homeowners, renters and business owners are eligible to have flood insurance for their properties.
  • Flood insurance is not just available for the dwelling unit. One can have flood insurance for the building as well as for its contents. Sometimes preference is given to people who live in a low risk area. A preferred policy can be opted by individuals who want to cover personal items into flood insurance policy. However contents coverage must be taken separately.
  • If you are in search of a policy which can give you speedy recovery from disasters then you can go for flood insurance- the most dependable policy. If you want coverage for rising waters, only flood insurance can give the assurance.
  • There is something called as “100-year flood standard” in flood insurance. The definition of this term according to Government is 1% chance of flood in any given year. This 100-year flood is a minimum standard that is used for referring insurance.
  • There are several factors that play their part in determining the premium for flood insurance. Date of construction of the property, flood zone, height of the property, improvements performed on the property and history of similar types of claims determine the amount of premium. The low risk zones have the advantage of getting a Preferred Risk Policy which gives the insured an opportunity to insure the contents of the property as well. Also the amount of premium is significantly low for the properties set at low risk zones.
  • The premium for flood insurance is set federally, so the insured doesn’t have to worry to go from one insurance company to another in search of the best competitive rate. However the coverage and exclusions can be checked for different insurance companies.
  • Inform your insurer after the flood has occurred. Your insurance company would arrange for the adjuster to make an estimate of the loss occurred. Take photographs of the damaged items and separate the damaged and undamaged items from each other. Once the adjuster finishes his work and produces the proof of loss, the claim report can be submitted.

There is a 30-day waiting period before flood insurance becomes effective. However it is important to keep such an insurance handy and renew it each year before it is too late.