What Is FEMA Flood Insurance?

Did you know that 90% of natural disasters in the United States involve flooding?
As per the government policy, people living in a flood-prone area need to have flood insurance, while others don’t have to buy it. However, here’s the catch. In reports released by the Federal Emergency Management Agency (FEMA), floods such as inland flooding, flash floods, and flooding due to seasonal storms happen in every region of the country.
This means that even if you live in an area which is less likely to be hit by a flood, there is still a possibility of flooding. For those who don’t have flood insurance, the damages from floods can prove to be very costly and are usually not covered by standard homeowner’s insurance policy.
The best way to counter this problem is by buying a flood insurance policy. You can either opt for government insurance policy (NFIP) or policy provided by private insurers.
In this blog, we are going to discuss FEMA’s flood insurance policy (NFIP) and how purchasing it can save you from any future loses.
What Is the National Flood Insurance Program (NFIP)?
National Flood Insurance Program or NFIP is a government subsidized program that lets homeowners, people in business, and renters in participating communities insure their property against flood damages. The program is offered and administered by FEMA.
The main aim of this policy is to lower the impact of flooding on private and public structures through affordable insurance. It also encourages community members to adopt and enforce floodplain management regulations in their area.
Types Of National Flood Insurance Program
As long as your community is participating in the program, you are eligible for both kinds of NFIP coverage – building property and personal property.
●    Building Property Coverage
Building property coverage is a replacement cost coverage. This policy covers the cost you would need to pay to repair or replace your home up to $250,000. The condition is applicable as long as your policy covers 80% of the total replacement cost, while you carry the maximum amount of coverage.
●    Personal Property Coverage
The policy is for your belongings. It helps you replace items up to $100,000 and includes depreciation value as well. This means that if you paid $1,500 for a TV about three years ago, personal property coverage would pay for what it is worth today.
What Does the National Flood Insurance Program Cover?
Let’s suppose you have bought both NFIP policies. Now, if flood damage occurs, the policy will cover up to $250,000 for your damaged home as per Building Property Coverage and up to $100,000 for your possessions as per Personal Property Coverage.
●    Building Property Coverage includes physical home and foundation, fixed kitchen appliances, plumbing and electrical, HVAC system, carpeting, wallboard and paneling, fixed cabinets, bookcases, window blinds, and detached garages.
●    Personal Property Coverage includes furniture, electronics, clothing, curtains, portable kitchen appliances, washers, dryers, the refrigerator, and valuables up to $2,500.
Make sure to talk to your local insurer or with the experts at NFIP regarding what all your insurance policy covers.
Things To Know When Buying A NFIP Coverage
●    It takes a minimum of 30 days for NFIP to go into effect.
●    You can buy NFIP from regular (non-federal) insurance providers who work as a mediator between insurance seekers and the federal government.
●    NFIP is comparatively cheaper than private insurance, but there can be exceptions. In low-risk areas, the policy covers up to $112, while it covers up to $1,207 in high-risk areas.
●    If you are unable to afford your policy’s annual premium, you can also pay for it monthly (including the deductibles).
●    Depending upon the size of the claim and the ability of the insurance company, the payout may take up to a year.
●    After the adjuster has evaluated the damage, you can put in a request for an advance or partial payment to get started with the repair work.
Have any more questions in mind regarding NFIP or other flood policies? Get in touch with Skyline Insurance Agency and consult the experts. Call at 540 635-1288 to book an appointment!

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