Floods are a disaster that no one can really prepare for. What many people do not realize is that their homeowner's policy does not cover floods. Unfortunately, most people realize this too late. Many people do not know how to go about getting flood insurance and what it covers.
So, what is the insurance definition of flood? A flood is a temporary condition where greater than two acres of normally dry land or properties are inundated by water or mud. Things like hurricanes, rapid rainfall, and clogged drainage systems can all cause a flood.
In 1968, the US government got involved by offering the National Flood Insurance Program (NFIP). They offer flood insurance to homeowners, renters, and business owners. This insurance helps people financially protect themselves in the event of a water related disaster.
The residential policy covers the dwelling. However, content coverage is optional. It is best to get both because floods typically destroy many items in the house as well. This policy has a 30 day waiting period after purchase before the policy will be effective.
Premiums will vary depending on whether FEMA has your home in a high, moderate or low risk flood area. Premiums for low risk dwelling start at $120 for the home and contents.
Just a few inches of water can cause thousands of dollars worth of damage to your home or office. Last year alone, the average damage due to flood was $33,000. Therefore, it is important to protect yourself with flood insurance through the NFIP.
As an author for Blue Flip Flops and Orange Flip Flops, the writer compares & reviews dozens of goods.
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