If you live along the coastline, you will, unfortunately, be familiar with flooding. In Florida, you are at a higher risk of flooding with frequent sea level rising of about six feet. Such a rise is enough to put all homes across Florida at risk of flooding.
Homeowners Insurance And Flooding
While it is commonly believed to be covered, it is not. Homeowners across Florida hold this misconception and are then negatively surprised when they discover the truth. What does this mean for you? If you live in Florida, it is time to obtain additional coverage to protect yourself, your home, and your valuables.
Homeowners In Need Of Flood Insurance
There are flood zone maps available which have visualized the risk of flooding. Many mortgage issuers make use of such maps in order to determine whether flood insurance should be mandated for homebuyers in their area. Though it should be noted that over twenty percent of flood claims stem from zones which have been declared low risk by such maps.
Obtaining Flood Insurance
The NFIP, or National Flood Insurance Program, has been put in place in order to make flood insurance available, and affordable, to people across the country living in high risk flooding areas. This NFIP has been administered by the FEMA, or Flood Emergency Management Agency, and its overseer has recommended the purchase of flood insurance to all Floridians, regardless of the risk designation of their area.
Necessity and Coverage Of Flood Insurance
The NFIP has a standard policy which provides the homeowner with replacement coverage for up to $250,000 in damages. This coverage is meant to cover repair and replacement costs for all flood damage done to the structure of the house. Additionally, cash value coverage is also included with a cap at $100,000. This coverage is meant to compensate for losses in personal possessions. It should be noted that flood insurance will not cover other types of water damage that do not stem from flooding, such as leaking pipes. Neither does it cover rain damage.
If you live in an area as frequently flooded as Miami, investing in flooding insurance is the only decision that makes sense, financially speaking. Thus, if you have not purchased a policy yet, now is the time. You do not want to wait for the next storm season to strike your home. You can look over the various available policies, compare them and then choose the one that suits your requirements. Additionally, you might want to check the insurance premium on online calculators to know exactly which policy might suit your budget.