Don’t get soaked without flood insurance

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.

Eligible Risks

1 – 4 Family Dwellings
Other Residential Buildings
Non-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.

Dwelling Policy Form

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:

• Detached, single-family, non-condominium residence with incidental occupancy limited to less than 50% of the total floor area;
• Two- to four- family, non-condominium building with incidental occupancy limited to less than 25% of the total floor area;
• Dwelling unit in residential condominium building;
• Residential townhouse/rowhouse
• Manufactured mobile homes

General Property Policy

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:

• Hotel or motel with normal guest occupancy of 6 months or more;
•  Apartment building
• Residential cooperative building
•  Assisted-living facility

And non-residential risks:

• Shop, restaurant, or other business
• Mercantile building
• Factory
• Warehouse
• Pool house, clubhouse, or other recreational building;
• House of worship
• Licensed bed-and-breakfast inn
• Non-residential condominium
• Detached garage
• Tool shed

When to Consider Excess Flood Coverage

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.

Before You Face an Extreme Downpour

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.

When Excess Flood Coverage Is Required

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.