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Flood Insurance

Flood insurance covers a dwelling for losses sustained by water damage specifically due to flooding caused by heavy or prolonged rain, melting snow, coastal storm surges, blocked storm drainage systems, or levee dam failure. <br>There are two ways you can get flood insurance: National Flood Insurance Program (NFIP) and Private Flood Insurance.<br>You can purchase flood insurance from the NFIP, managed by the Federal Emergency Management Agency (FEMA). You can find insurers who work with NFIP online or contact the NFIP Referral Call Center at (888) 379-9531. The price and premiums are pre-set by the NFIP, by considering factors like the property value, the age of the house and property, and flood risk. So, the premiums will be the same no matter which insurer or agent you deal with.<br>As opposed to NFIP, the premiums on flood insurance sold by private companies will be different. The prices could be higher as well as lower. The coverages can be customized, and the claim limits can exceed more than that of an NFIP insurance policy.<br>There are advantages and disadvantages of buying insurance from either option. You need to identify you needs for flood insurance and invest in the policy that benefits you the most.<br>To learn more about flood insurance, http://quotezebra.com/flood-insurance/

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Flood Insurance

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  1. Flood Insurance National Flood Insurance Program (NFIP) vs. Private Flood Insurance

  2. What is Flood Insurance? • Flood insurance is a type of property insurance that covers a dwelling for losses sustained by water damage specifically due to flooding caused by heavy or prolonged rain, melting snow, coastal storm surges, blocked storm drainage systems, or levee dam failure.

  3. Ways to Get A Flood Insurance Policy • There are two ways through which you can get a flood insurance policy: • National Flood Insurance Program (NFIP) • Private Flood Insurance

  4. National Flood Insurance Program (NFIP) • You can purchase flood insurance from the NFIP managed by the Federal Emergency Management Agency (FEMA) • You can find insurers who work with NFIP online or contact the NFIP Referral Call Center at (888) 379-9531. • The price and premiums are pre-set by the NFIP, by considering factors like the property value, the age of the house and property, and flood risk.

  5. Things to keep in mind while buying a NFIP flood policy • You don't need to live in a flood-prone area to purchase a flood policy. • The premiums on the flood insurance will be the same regardless of which insurer or agent you deal with. • Your coverage won't kick in until 30 days after you sign up.

  6. NFIP • Cons • The coverage tops at $250,000. • Doesn’t cover additional living expenses in the advent of an actual flood • Longer processing period Pros • Reliable coverage since the government backs it. • Available to everyone, in or out of the flood-prone regions

  7. Private Flood Insurance • The federal regulators announced a rule allowing lending institutions to accept private flood insurance policies equivalent to the NFIP, as reported by Congressional Research Service in 2019. • As opposed to NFIP, the premiums on flood insurance sold by private companies will be different. The prices could be higher as well as lower. • The coverages can be customized, and the claim limits can exceed more than that of an NFIP insurance policy.

  8. Buying flood insurance from a private company has some risks. • These insurers can deny renewing your policy despite paying premiums or drop your policy mid-term. • This might leave you stuck in an unexpected situation and have you scrambling for another insurer in the last-minute.

  9. What is the solution? • Buy insurance from a reputed insurers, preferably the one with good client satisfaction record. • Reputed companies with a good history of service and satisfied customers would avoid a bad record of unsatisfied customer.

  10. Private Flood Insurance Pros: • Higher claims limits and coverage options available. • Shorter processing period (14 days). • Cons: • The risk of being droppedor denial to renew the policy. • Unavailable in all states.

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