Did you know that flooding is the most common and costly natural disaster in the United States?
Furthermore, even the smallest flood event can cause serious and costly damage. Unfortunately, most homeowners often underestimate their flood risk and do not understand the importance of obtaining flood insurance to protect their family and property.
Without a specific flood endorsement, homeowners, renters, and business insurance policies do not cover flood damage. The FAIR Foundation recommends that ALL homeowners and business owners should have flood insurance. There are several options to buy flood insurance in the U.S. The National Flood Insurance Program (NFIP) is a government program that provides coverage for many homes. However, there are increasingly affordable private market options available in addition to purchasing coverage from the NFIP.
Flood insurance is essential for any homeowner, business owner, or renter. Ask the right questions so you can buy the flood coverage you need:
You may have heard discussions in the news or from your insurance agent about Risk Rating 2.0. Risk Rating 2.0 is an initiative by FEMA to update and modernize how NFIP policies are priced. Prior to Risk Rating 2.0, insurance rates were set based on the elevation of a property and its flood zone. FEMA did not consider other factors relevant to an individual property such as its distance to water. Under the new system, FEMA “leverages best industry practices and cutting-edge technology to deliver rates that are actuarily sound, equitable, easier to understand, and better reflect [an individual] property’s flood risk.” Notably, this includes taking into consideration the property’s replacement cost value. (Source: www.fema.gov)
Residential, commercial, and renters flood insurance is available from both the federal government through the National Flood Insurance Program (NFIP). Both NFIP and private flood insurance can be used to satisfy mandatory purchase requirements.
More About Private Flood Insurance Policies:
