One of the things many residents love most about living in the sunshine state is the convenient access they have to the beach and ocean from almost anywhere in the state and the nearly endless outdoor activities that are available to enjoy. But Florida also gets its share of severe thunderstorms, tropical storms, hurricanes, and tornados. Combining this bad weather with the fact that the state is a peninsula surrounded by water means flooding can occur in any area at any time. But surprisingly, flood insurance is the most common type of insurance coverage avoided by property owners.
How Much Does Flood Insurance Cost?
Flood insurance is regulated by the Federal Emergency Management Agency (FEMA) and is relatively in-expensive. This is especially true for residents who don’t live in a declared Flood Zone, and most of Central Florida is not deemed a Flood Zone.
Is Flood Insurance Mandatory?
Flood insurance isn’t required for everyone, but in some circumstance you may be required to carry it. For example, if you are financing your property, your lender may require you carry flood insurance as part of your loan agreement, especially if you are in an established Flood Zone. You can locate your area’s flood zone map through the FEMA’s Flood Map Service Center.
But it is a good idea for every property owner to protect themselves with a flood insurance policy, even if you don’t live in a high-risk flood zone and your lender doesn’t require you to carry it. In fact, 25% of all National Flood Insurance Program (NFIP) claims are for structures that are not in high-risk flood zones.
Why Do I Need A Separate Flood Insurance Policy?
Most property insurance policies, such as homeowners insurance, typically exclude coverage for damages caused by a flood. The National Flood Insurance Program (NFIP) defines a flood as a “general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow”. Floods can severely damage property and the costs of repairing or replacing that damaged property can add up quickly.
What Does Flood Insurance Cover?
Flood insurance provides coverage for the physical structure of your home and the personal property you keep inside it. A standard flood insurance policy typically includes the following three types of coverage to protect you from financial loss if a flood damages your property:
Dwelling coverage helps pay for the costs of repairing damages to the physical structure of your home. It also helps pay for the costs of rebuilding your home if the damage can’t be repaired. Your home’s physical structure includes anything physically attached to your home such as the foundation, windows, walls, floors, and roof.
Personal Property Coverage
Personal property coverage protects the personal property you keep inside your home such as your clothes, furniture, and jewelry. This coverage helps pay for the costs of repairing or replacing your personal property damaged by a flood.
Flood insurance policies usually offer limited coverage for basements. Property used to service the home such as washers, dryers, furnaces, and water heaters are usually covered, while items such as wall finishing, flooring, and personal property stored in the basement typically are not covered.
At Excellence First Insurance our licensed insurance agents know how important flood insurance is to ensure our client’s best interest is protected. That’s why we automatically provide a Flood Insurance quote with every property insurance quote we provide. If you purchased your property insurance policy through another agency, our agents can review your current policy and ensure you have the full protection you need by helping you supplement any limitations or exclusions within your coverage.
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