What’s Covered by Online Flood Insurance

by | Aug 4, 2015 | Insurance

Many homeowners find out that their home insurance policies don’t cover damage caused by floods and storms. If someone lives in a flood-prone area, they should consider buying flood insurance to cover the home and their belongings. In this article, consumers can learn what flood insurance covers and how to buy it.

Where to Buy Flood Coverage

Customers can buy Online Flood Insurance from an agent or a broker through the NFIP (National Flood Insurance Program), which is run by FEMA. If a homeowner lives in a participating area, they can buy flood insurance, and they should visit floodsmart.gov to find a local agent.

Get Coverage for Contents and Property

An NIFP policy can provide up to $250,000 in coverage for the structure and $100,000 for the contents. Those needing extra coverage can buy it through private sellers, for about $700 per year. Buying a home in a flood zone may come with a mandatory insurance requirement.

  • Contents are covered based on their cash value, which can decline as goods get older.
  • Property can be covered according to its replacement cost, which is ideal for primary residences. Coverage provides at least 80% of the home’s replacement value, or the NFIP maximum.

What’s Not Covered

Good policies can be a lifesaver after a disaster, but insurance doesn’t cover it all. Before buying flood coverage, customers should learn about its limitations and restrictions. If something happens inside the home, flood insurance won’t cover it. A broker or Insurance Offices Texas can further explain coverage limits.

Small Floods and Business Interruptions

For a flood to be covered, the water has to have affected at least one other property. If a home sustains mildew or mold damage that was preventable, it will not be covered. Financial losses related to business interruptions aren’t covered if the business is operated from the home.

Unlike any other kind of insurance, Online Flood Insurance does not start on the first day. With very few exceptions, customers must wait a minimum of 30 days before the policy takes effect. The longer the policy purchase is delayed, the greater the risk of a loss before coverage is in force.

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