What is flood insurance?
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. How much does flood insurance cost? According to FEMA, the average homeowners flood insurance premium is a little more than $500 a year. Premiums for flood insurance will vary depending upon your risk level for a flood loss, th
Unlike a standard homeowner’s policy, flood insurance covers losses to your property caused by flooding. Some of the things a standard flood policy will cover include • structural damage • furnace, water heater, and air conditioner • flood debris cleanup • 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. When a property securing a loan is located in a Special Flood Hazard Area (SFHA), a national bank may not make, increase, extend, or renew any mortgage loan unless that property is covered by flood insurance. At a minimum, the insurance coverage must equal the outstanding principal balance of the loan. Coverage must be obtained and maintained throughout the term of the loan. To obtain coverage, you must live in one of the communities that have an agreement with the Federal Government. Flood insurance coverage is offered through the Federal Emergency Ma
