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
Have a Bad Habit of Overspending? Here’s How You Can Finally Take Control of Your Money
Having no control over one’s spending habits can easily derail their personal finances and prevent them from achieving their long-term goals....December 27, 2019
‘Captain Marvel’ Star Brie Larson Just Went On a Real Estate Shopping Spree & These Are The Stunning Properties She Got
Being on the Marvel bankroll is a lucrative job and award-winning actress Brie Larson is proof of it. The 30-year-old has...December 26, 2019
This Is The One Trait That Bad Bosses Have, According to Thousands of Employees Who Have Dealt With One
Thousands of European workers have said their piece and this is what they have to say about the qualities bad bosses...December 25, 2019
You’ll Be Inspired After Reading Former NBA Player Junior Bridgeman’s Expectation-Defying Success Story
It’s a sad reality than a reported 60% of NBA players eventually go broke after about five years into their retirement...December 24, 2019
These Millionaires Refuse to Spend Their Money on These Items & Maybe You Should Too
Contrary to what most people might believe, not all millionaires spend indiscriminately on themselves. Some prefer to put their money on...December 23, 2019
Want to Advance Your Career? Avoid Turning Into These Negative Workplace Personalities at All Costs
One’s professional personality can make or break their career. Now, more than ever, workplaces are beginning to focus on creating positive...December 20, 2019
Want to Keep Your Creative & Analytical Skills Sharp For Work? Take On These Interesting Hobbies On Your Free Time
Self-improvement should be a lifelong practice, especially for people who want to advance their professional career. Doing so would help an...December 19, 2019
Your Profession May Have More Weight On The Car Insurance Rates You’re Granted With Than You Initially Thought
When assessing their applicants, car insurance providers create accurate profiles of individuals considering factors like their age, credit score, marital status,...December 18, 2019
You Won’t Believe How Much These Actors, Who Played Professors in the Harry Potter Movies, Are Worth
Young and old, everyone was captivated by the Harry Potter franchise – and who wouldn’t be? Die-hard fans carefully followed the...December 16, 2019