When it comes to flood insurance, it’s important to understand your policy and what it covers.
The National Flood Insurance Program (NFIP) offers flood insurance to homeowners, renters, and business owners through the Standard Flood Insurance Policy (SFIP). The SFIP provides coverage for flood damage to your home or business up to $250,000, and it also covers personal belongings up to $100,000.
If you live in a high-risk flood zone, your mortgage lender may require you to purchase flood insurance.
Even if you don’t live in a high-risk flood zone, flood insurance is still a good idea because floods can happen anywhere. And if you live in a community that participates in the NFIP, you may be eligible for discounts on your premium.
Maintaining coverage is the most important step you can take to protect against the cost of flood damage. So make sure you understand your policy and what it covers. And if you have any questions, contact your insurance agent or the NFIP.
The National Flood Insurance Program (NFIP) is managed by FEMA and is delivered to the public by a network of more than 50 insurance companies and the NFIP Direct. Floods can happen anywhere — just one inch of floodwater can cause up to $25,000 in damage. Most homeowners insurance does not cover flood damage.
That’s why it’s important to have flood insurance if you live in an area that is prone to flooding. The NFIP offers flood insurance for both homeowners and renters, and it is backed by the US government.
So if you’re ever faced with a flood, you can rest assured that you’re covered.
The insurance company that issued your flood insurance policy will provide you with a declaration page which is a part of your annual policy contract.
The declaration page is usually the first page and is an outline of your flood insurance policy that provides the information you’ll need at the time of a loss.
Each year when you receive this packet, please make sure to confirm that your policy information is accurate and up to date. Contact your insurance company or agent if any changes are required. This will help to ensure that you have the coverage you need in the event of a flood. By keeping your policy up to date, you can help to protect yourself and your property from the devastating effects of flooding.
The following provides a general overview of items covered by your flood insurance policy; it is not a comprehensive list. Review your policy for complete coverage and exclusion information.
Your policy lists specific coverage exclusions and limitations. Please refer to your policy for the complete list.
Report your loss immediately to your insurance agent or to the carrier’s claims office and ask them about an advance payment. Then, prepare for your flood insurance adjuster visit.
Compile invoices from appliance repairs with appliance serial numbers included.
Obtain and provide receipts to verify repairs that were made following any prior flood loss.
Separate damaged and undamaged property.
Make a list of all damaged belongings if you have contents coverage.
Take pictures or videos of damaged property before removing from the location.
Replacement Cost Value (RCV) is the cost to rebuild a
structure using the same kind of material and construction without a deduction for depreciation. Actual Cash Value (ACV) is the cost to replace insured property less the value of physical depreciation.
If you make a claim and your building coverage is within 80% of the replacement cost of your home, and your home is your principal residence, your claim will be settled based on replacement cost (up to the amount of coverage you purchased). Claims for personal property (contents coverage) are always paid based on ACV. It is important to keep this in mind when determining the amount of coverage to purchase. Talk to your insurance agent about RCV and ACV.
Most NFIP policies include Increased Cost of Compliance (ICC) coverage, which applies when flood damage is severe. If your community declares your home “substantially damaged” or a “repetitive loss property,” you will be required to bring your home up to current community standards. If your damaged building qualifies for ICC coverage, you could receive up to $30,000 to cover the cost to elevate, demolish, or relocate your home. Please refer to Coverage D of your policy and discuss with your insurance agent for further details.