What is flood insurance?
Flood insurance is an important consideration when buying floodplain property. A person should be aware of the National Flood Insurance Program (NFIP), which provides flood insurance coverage for structures and their contents, in communities participating in the NFIP. Under this program, federally insured or regulated institutions must require flood insurance policies on all new loans for structures in mapped 100 year floodplain areas recognized by the Federal Emergency Management Agency (FEMA). A person can find out if a piece of property is located in the floodplain by checking with the local building or zoning officials (ask for the “Flood Insurance Rate Map” or the “Flood Hazard Boundary Map” furnished by FEMA). If a person is considering the purchase or development of floodplain property, their insurance agent can provide information on the cost and availability of flood insurance. It should be noted that flood insurance is available for structures only in communities participatin
Unlike a standard homeowner’s insurance policy, flood insurance covers losses to your property caused by flooding. Some of the things a standard flood insurance policy will cover include: • structural damage • furnace, water heater and air conditioner • flood debris clean up • floor surfaces such as carpeting and tile. You can also buy a flood insurance policy to cover the contents of your home, such as furniture, collectibles, clothing, jewelry and artwork. Policies are available in three forms: Dwelling (most homes), General Property (apartments and businesses), and Residential Condominium Building Association (condominiums). It is important to know that if you have a federally backed mortgage on a home located in a high-risk area, federal law requires you to purchase flood insurance. Also, if you’ve received a federal grant for previous flood losses, you must have a flood policy to qualify for future aid.
· Flood insurance is a special policy that is federally backed by the NFIP and available for both homeowners and businesses. · You can buy flood insurance for your home or business regardless of whether the property is in or out of a floodplain, as long as the property is located in a participating community. · You may buy flood insurance covering up to $250,000 of flood damage to your home. A standard flood policy will cover structural damage, including damage to the furnace, water heater, air conditioner, floor surfaces (carpeting and tile) and debris clean up. · For an additional premium, you also may buy flood coverage for up to $100,000 of damage to the contents of your home. · Coverage is available for up to $500,000 for non–residential buildings and their contents. Plan Ahead — Waiting Period · Commissioner Jim Atterholt certainly understands that the flooding that has occurred over the past few days is very unusual, but continues to stress the importance of planning ahead. “For
