How Does Flood Insurance Work and How Can Carolinas Avail It.
Are you one of the home and commercial owners who suffered from the flooding effects of Hurricane Florence? Here’s how you can avail of flood insurance to protect your properties from the current and upcoming calamities.
The Catastrophic Flooding
Just last week, Hurricane Florence lambasted the North Carolina coast and dumped at least 2 feet of rain, flooding the thousands of residential and commercial areas in the process. As if that wasn’t enough, the Hurricane threatens to flood the neighboring South Carolina State and the Tar Heel state as it makes its way over these places. While most homeowners face the damaging effects of the catastrophic flooding, most of them also lack the right insurance to cover these costs. They may end up paying for the damages and fixes by themselves.
It’s because most homeowners insurance generally won’t cover any flood-related losses. According to Insurance Information Institute spokeswoman Lynne McChristian, most home insurers exclude calamities like flooding in their coverage, the same is true for the renters’ insurance. She adds how the flooding comes as an uninsurable risk due to the widespread damage it caused on many homes. However, this can be prevented by getting a specific insurance, namely the flood insurance.
What Is Flood Insurance?
The National Flood Insurance Program designed a specific insurance policy to help restore your home and replace all your damaged possessions before the flood occurred. Most NFIP policies can cover up to $250,000 for your house structure, and it gives an additional $100,000 lump sum to replace your damaged possessions.
If you’re living in a flood-prone area, Santos recommends you should avail of an additional coverage from private insurers. Or if not, you can ask whether your mortgage lenders also offer a flood insurance. According to him, most mortgage lenders require their customers to also get a flood insurance, especially in flood-prone areas. Additionally, you’ll also be eligible for future federal aid if you have a flood insurance.
How Does Flood Insurance Work?
To prevent the surge of unusual flood policy application especially after a hurricane, most flood insurers implement a 30-day waiting period after the weather disturbance before the insurance to take effect. This means you cannot buy an insurance policy quickly as a hurricane approaches your area. Aside from that, the policy must be renewed each year. If you’re serious in availing of the policy, you must plan ahead of time. You can contact your home insurance providers on how to get an NFIP policy. If not, you can also contact your insurance broker or agent to see if they offer NFIP policies too.
Your premium payments will also depend on your deductibles, home characteristics, and flood risk assessment. According to McChristian, the average annual premium is around $600-$700, especially for those who live in flood-prone areas. But if you live on the coast, the premium might increase up to thousands of dollars since the risk is greater in this area.
You can simply contact your insurance provider to file for a flood damage claim once the weather condition is safe. A claims adjuster then will go to your home to assess the damage and determine which are included in the coverage. It’s also important to take a picture of your house and possessions before and after the event. This serves as an inventory and evidence as the NFIP releases checks to pay for their clients’ losses associated with flooding.
For Non-Flood Insurance Clients
While you may have to pay for all your losses if you don’t have a flood insurance, you can still get small disaster grants from the Federal Emergency Management Agency. They offer $5,000 cash assistance for household owners affected by the flooding. It may not be much compared to a flood insurance claim of $30,000, but at least there’s help.
More in Insurance
These Surprising Workplace Perks Can Save You a Lot of Money in 2019
Retirement funds, health insurance and yearly bonuses aren’t the only benefits of working a nine-to-five job. If you need a little...February 20, 2019
The Simple Way To Save Money and Live Debt-free
In actual fact, saving the amount of money you spend on food isn’t so difficult if your area is one with...February 20, 2019
Home Insurance Mistakes That Can Seriously Cost You
One of the biggest monthly expenses that comes with buying a house is homeowners insurance which keeps us under the protective...February 20, 2019
What Next After You Buy Your Life Insurance Policy?
A lot of factors go into the determination of the life insurance policy which is perfectly suitable for your needs. In...February 20, 2019
Why Mortgage Application Rates Will Continue To Go Down
It would seem that the real estate market will continue to struggle. That is because I’d the mortgage applications for new...February 20, 2019
New Study Reveals Films With Female Leads Make More Money
It has been such a sensitive topic nowadays to talk about equality for both gender in all aspects in the society....February 20, 2019
Tesla’s Shares Continue to Stumble as Executives Quit
As if Tesla’s CEO Elon Musk’s admission in an explosive interview in NYT about him taking pills to sleep. This, after...February 20, 2019
Important Things You Must Know Before Getting a Pet Insurance
Feeling down, blue, or just bored? Animals have always found a way to cheer us up. They are like friends who...February 20, 2019
Study Reveals That Debt Repayment Isn’t A Top Priority For Most Millennials
A study by Northwestern Mutual found that Millennials have debts totaling an average of $36,000 and they spend nearly 34% of...February 20, 2019