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Myths and Facts About Flood Insurance
Nationwide, more than 20,000 communities participate in a national program that makes residents eligible for flood protection. This 38 year-old program, the National Flood Insurance Program (NFIP) provides flood insurance protection to people living in areas with the greatest threat of flooding. Today, virtually every homeowner is eligible to purchase flood insurance through the NFIP.
However, there are myths about this coverage and there are facts, here are just a few.
If you have more concerns after reading the information below, contact our office and we will be happy to answer your questions.
Myth # 1
You can't buy flood insurance if you are located in a high-flood-risk area.
FACT
If your community participates in the NFIP, you can by National Flood Insurance no matter where you live. The program was created to provide flood insurance to people in areas known as Special Flood Hazard Areas (SFHAs) which generally are areas with the greatest risk of flooding. There are some exceptions.
Myth # 2
You can't buy flood insurance immediately before or during a flood.
FACT
You can purchase flood coverage at any time. There is a 30-day waiting period after you've applied and paid the premium before the policy is effective. Other issues are related to (1) purchasing flood insurance in connection with making, increasing, extending or renewing a loan (2) waiting periods if purchase of flood insurance is made during the 13 month period following the revision of a flood map for a community.
Myth # 3
Homeowners insurance policies cover flooding.
FACT
Flood insurance is available to protect homes, condominiums, apartments, nonresidential buildings and commercial structures. A maximum of $250,000 of building coverage is available for single-family residential buildings; $250,000 per unit for residential condominiums. There is a $100,000 contents coverage limit coverage on all residential buildings for owners or renters. Commercial buildings have different structure and contents limits.