How to Get Insurance Protection Against Natural Disasters
Go to the National Flood Insurance Program’s website., Determine the level of risk in your area., Make sure you know what’s covered., Pick a reasonable deductible., Retrofit your home., Speak with an agent., Consider excess flood insurance.
Step-by-Step Guide
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Step 1: Go to the National Flood Insurance Program’s website.
Located at http://www.floodsmart.gov, the National Flood Insurance Program is the place to start your search for flood insurance in the U.S..
There you can learn about flood insurance in general, determine the risk of flooding in your area, and even find local agents who sell flood insurance. -
Step 2: Determine the level of risk in your area.
You can find out what the risk profile for your property is right on the homepage of floodsmart.gov.
All you have to do is enter your address—it will tell you the level of risk for your address and your annual premium.If you live in a high-risk area, it means there’s at least a 25% chance of a flood occurring during the lifetime of a thirty year mortgage.
If you live in a high risk area and have a federally-backed mortgage, flood insurance is mandatory.
Although mortgagors in lower risk areas are not required to purchase flood insurance, flood damage from those areas represents over 20% of all claims and 30% of all disaster assistance.
If you would like to view a map of the flood risk in your area, go to https://msc.fema.gov/portal and enter in your address. , There are two basic types of flood insurance, structural insurance and contents insurance.
Structures are insured up to $250,000 and contents are insured up to $100,000.Structural insurance covers the actual home itself, including the foundation, walls, roof, heavy appliances, flooring, electrical and plumbing systems, and HVAC systems.
Contents insurance covers what is inside the home, such as your personal belongings, washers and dryers, artwork up to $2,500, window AC units, dishwashers, and microwaves. , The standard deductible for flood insurance is $500 for new homes and $1,000 for older homes.
That deductible applies separately to the coverage on the structure and the coverage of the contents of the home.
You can pick a higher deductible (up to $5,000) in an effort to lower your monthly payment.
Remember though, a higher deductible isn’t really saving you money in the sense of you getting more for paying less.
All the higher deductible does is obligate you to pay more out of pocket when disaster strikes.If you’re tempted to opt for a larger deductible, think long and hard about it.
The average flood insurance claim is $30,000, and in the event of a major disaster, can be much higher.
A major flood might destroy your home, but it can also devastate your entire region.
If you’re out of work and your bank has been destroyed right along with your home, paying the extra $4,500 might be much more difficult than it sounds.
Making adjustments to the deductible is the primary way people influence their monthly flood insurance payments.
Premiums are otherwise determined by the National Flood Insurance Program; the insurance carriers don’t influence the price one way or the other. , There are several renovations you can make to help flood-proof your home, and most of them will lower your premium.
Some of these can be quite expensive, so they might not pay for themselves for several years.
Nonetheless, you might find it’s worth it to go ahead and get the renovations.
They will save you from damage, and not having to go through the hassle of repairing damage can be it’s own reward.Some of these renovations include elevating your home, elevating your furnace or your AC unit, moving outlets higher up on the walls, and moving your circuit breaker to a higher floor.
If you do elevate your home, make sure to get the elevation certified.
Elevation certificates can be purchased from architects or land surveyors in your area.
To find a surveyor, go to the website of your state association of surveyors and find one in your area., The National Flood Insurance program has a directory of agents selling flood insurance in your area.
In order to purchase a policy, simply go to https://www.floodsmart.gov/floodsmart/pages/residential_coverage/agent_locator.jsp and enter your address, then speak with an agent near you., Flood insurance beyond what’s available through the National Flood Insurance Program is both pricey and hard to come by (imagine a premium of $12,000 per year for
2.5 million in coverage).
However, it is available for purchase on the private market from select insurers.
Some of the larger insurers offering excess flood insurance coverage include AIG, Fireman’s Fund, and Lloyd’s of London. -
Step 3: Make sure you know what’s covered.
-
Step 4: Pick a reasonable deductible.
-
Step 5: Retrofit your home.
-
Step 6: Speak with an agent.
-
Step 7: Consider excess flood insurance.
Detailed Guide
Located at http://www.floodsmart.gov, the National Flood Insurance Program is the place to start your search for flood insurance in the U.S..
There you can learn about flood insurance in general, determine the risk of flooding in your area, and even find local agents who sell flood insurance.
You can find out what the risk profile for your property is right on the homepage of floodsmart.gov.
All you have to do is enter your address—it will tell you the level of risk for your address and your annual premium.If you live in a high-risk area, it means there’s at least a 25% chance of a flood occurring during the lifetime of a thirty year mortgage.
If you live in a high risk area and have a federally-backed mortgage, flood insurance is mandatory.
Although mortgagors in lower risk areas are not required to purchase flood insurance, flood damage from those areas represents over 20% of all claims and 30% of all disaster assistance.
If you would like to view a map of the flood risk in your area, go to https://msc.fema.gov/portal and enter in your address. , There are two basic types of flood insurance, structural insurance and contents insurance.
Structures are insured up to $250,000 and contents are insured up to $100,000.Structural insurance covers the actual home itself, including the foundation, walls, roof, heavy appliances, flooring, electrical and plumbing systems, and HVAC systems.
Contents insurance covers what is inside the home, such as your personal belongings, washers and dryers, artwork up to $2,500, window AC units, dishwashers, and microwaves. , The standard deductible for flood insurance is $500 for new homes and $1,000 for older homes.
That deductible applies separately to the coverage on the structure and the coverage of the contents of the home.
You can pick a higher deductible (up to $5,000) in an effort to lower your monthly payment.
Remember though, a higher deductible isn’t really saving you money in the sense of you getting more for paying less.
All the higher deductible does is obligate you to pay more out of pocket when disaster strikes.If you’re tempted to opt for a larger deductible, think long and hard about it.
The average flood insurance claim is $30,000, and in the event of a major disaster, can be much higher.
A major flood might destroy your home, but it can also devastate your entire region.
If you’re out of work and your bank has been destroyed right along with your home, paying the extra $4,500 might be much more difficult than it sounds.
Making adjustments to the deductible is the primary way people influence their monthly flood insurance payments.
Premiums are otherwise determined by the National Flood Insurance Program; the insurance carriers don’t influence the price one way or the other. , There are several renovations you can make to help flood-proof your home, and most of them will lower your premium.
Some of these can be quite expensive, so they might not pay for themselves for several years.
Nonetheless, you might find it’s worth it to go ahead and get the renovations.
They will save you from damage, and not having to go through the hassle of repairing damage can be it’s own reward.Some of these renovations include elevating your home, elevating your furnace or your AC unit, moving outlets higher up on the walls, and moving your circuit breaker to a higher floor.
If you do elevate your home, make sure to get the elevation certified.
Elevation certificates can be purchased from architects or land surveyors in your area.
To find a surveyor, go to the website of your state association of surveyors and find one in your area., The National Flood Insurance program has a directory of agents selling flood insurance in your area.
In order to purchase a policy, simply go to https://www.floodsmart.gov/floodsmart/pages/residential_coverage/agent_locator.jsp and enter your address, then speak with an agent near you., Flood insurance beyond what’s available through the National Flood Insurance Program is both pricey and hard to come by (imagine a premium of $12,000 per year for
2.5 million in coverage).
However, it is available for purchase on the private market from select insurers.
Some of the larger insurers offering excess flood insurance coverage include AIG, Fireman’s Fund, and Lloyd’s of London.
About the Author
Teresa Bishop
Creates helpful guides on home improvement to inspire and educate readers.
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