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Deluge of H2O….Are you protected?

August 9, 2013

Yup – We Mean Flood Waters and Flood Insurance.

We have talked about flood insurance over the years.  Often we post in and around National Flood Safety Awareness Week or touch on specialty topics such as DIC policies including flood insurance.  So, do YOU have flood insurance?  Do you NEED flood insurance?  This week, let’s look at why, when, and where to buy flood insurance. 

Why

Should everyone purchase a flood insurance policy?  If you have a choice, maybe or maybe not.  The Federal Emergency Management Agency (FEMA) and its flood division – the National Flood Insurance Program (NFIP) – highly recommend that everyone should have a flood policy because standard property policies DO NOT cover flooding.

Again, if you have a choice and: a) IF you DO NOT live in a flood plain; b) DO NOT live near rivers or creeks; or, c) DO NOT live within 500 miles of the ocean, then perhaps you might choose to gamble and decide to forego flood insurance.   We suggest you carefully consider your risk should you determine you don’t want to purchase a flood policy.

If you don’t have a choice, it’s because your property is located in or near a flood zone and your mortgage lender is demanding that, as a condition of the loan, you purchase and maintain coverage for the life of the note.

When

Of course if your mortgage lender is demanding a flood policy as a condition, you will purchase the policy as part of the closing process.  However, anyone can purchase flood insurance at any time.  There may be conditions concerning a waiting period from the time the policy is written and the time it goes into effect but the myth that there is a time limit is erroneous.  If you have a need, then any time is the right time.

Where

The good news is that anyone can purchase flood insurance through the NFIP.  Because the NFIP regulates pricing, availability, community flood zones, etc., the program is standardized.  Anyone can purchase flood insurance from authorized agents in their own neighborhoods.  It doesn’t matter which agent, agency or carrier, you choose.  The flood policy, its premium, its coverage offerings, options, etc. are managed by the NFIP.  Again, this is good news for the consumer.  The NFIP keeps premiums controllable and affordable but also keeps unscrupulous insurance agents at bay. 

Even though it’s the middle of summer, it’s always Flood Season.  Recent catastrophic forest fires coupled with mid-summer monsoon season has created a window of flood opportunity.   Don’t get stuck in a deluge!  Take a look at your potential for flood risk and call an authorized flood agent to find out if you are in a flood zone.

Subscribe to the Avanti Reader via RSS or follow us on Facebook or Twitter (@AvantiInsurance) to stay informed on useful insurance topics for your home and business.  As always, thanks for reading.

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