Homeowners insurance policies do not cover Flood damage to your home or personal property. However, many people fail to secure flood insurance even when they are located in flood-prone areas such as Florida where loss from flood damage is 26 times more likely to occur than from fire. Preferred Link licensed insurance professionals can assist you with determining the necessary amount of flood coverage you need to remain high and dry.
1 – 4 Family Dwellings
Other Residential Buildings
The NFIP’s Dwelling Form offers coverage for:
1) Building Property, up to $250,000, and
2) Personal Property (Contents), up to $100,000.
Your mortgage company may only require that you to purchase a certain amount of flood insurance coverage, usually pertaining to the structure (Dwelling coverage).
However, if your budget permits Preferred Link always recommends the purchase of Personal Property coverage.
The Dwelling Policy Form may be issued to homeowners, residential renters and condominium unit-owners, owners of residential buildings containing two to four units.
In communities participating in the National Flood Insurance Program Regular Program or Emergency Program the dwelling policy provides building and/or contents coverage for:
Form The General Property Policy Form may be issued to owners or lessees of non-residential buildings or units, or residential condominium buildings that are uninsurable under the Residential Condominium Building Association Policy (RCBAP).
In communities participating in the NFIP Regular Program* or Emergency Program** the General Property Policy provides building and/or contents coverage for these and similar “other residential” risks:
And non-residential risks:
The National Flood Insurance Program (NFIP) offers insurance coverage up to specific limits and is based on flood plain zones developed by the Army Corps of Engineers. Of course, many residences and businesses in flood-prone areas have values far greater than the national program. If the value of your building and contents is above the maximum coverage available through NFIP, you’ll want to consider purchasing Excess Flood insurance.
On a residential structure, the maximum coverage through NFIP is $250,000 for the building and $100,000 for contents. This means that if the value of your home and contents exceed those values, you may very well want to investigate adding Excess Flood coverage for peace of mind.
For non-residential structures, the maximum NFIP coverage has a $500,000 building and contents limit.
Insuring the full value of the building and contents prevents shortfalls.
Mother Nature has taken some dramatic turns recently. In 2008 flash floods damaged $1.27 billion of property, and river floods added another $2.12 billion to the total. Don’t get caught cleaning up after the event only to realize that your insurance policy won’t cover the damage.
If you have a mortgage on the property, you are most likely required to secure 100 percent of the loan value. If your mortgage amount exceeds the NFIP coverage limits, protect your largest investment, home and/or business, by obtaining excess flood coverage.