Homeowners’ and renters’ insurance policies cover many things, but floods aren’t one of them. Many people don’t know that flood policies are only available from a single source: the NFIP (National Flood Insurance Program), which is a division of FEMA. Below are a few things for renters and homeowners to know about purchasing Flood Insurance Service in Magnolia.
What is the NFIP?
As mentioned above, flood policies are provided by the NFIP. While floods used to be covered by standard insurance, flood coverage became a separate entity in the 1950s. The NFIP was created to incentivize risk management and make the cost of flood coverage more affordable.
Who Needs Coverage?
It may seem obvious that those living near rivers and coastlines need flood insurance, but the risk is greater than most people think. A flood can occur anywhere, whether it’s from snowmelt, a hurricane, or heavy rains. About 25% of claims originate in moderate-risk areas, and it’s important for most homeowners and renters to have coverage.
Purchasing Coverage
Although flood policies are provided by the NFIP, they’re not bought there. Flood Insurance Service in Magnolia is available through local agents, while the federal government is responsible for the underwriting of losses. There’s a 30-day period between when a policy is purchased and when it becomes effective. Other than that, flood policies work much like homeowners’ and renters’ insurance. Premiums are paid monthly, deductibles must be met, and there’s a coverage limit to consider.
How Rates are Set
Because flood insurance is available from the NFIP, it’s not possible to get a lower rate by going with another company. A home’s location within a flood zone is the primary factor in determining the rate, and coverage amounts and deductibles play a role as well.
Saving on Insurance
While it’s not possible to save by choosing a particular provider, there are ways to reduce the rate paid for flood insurance. Ask an agent for discounts and ensure the home is sufficiently elevated. If flood insurance is still unaffordable, DHS and FEMA may provide assistance in some cases. Call today or visit Insurancediscountersoftx.com for additional details.
