Besides fire, flooding is the most common natural disaster. In order to legitimize a flood as occurring, two adjacent properties must be under water.
As with earthquake insurance, the basic homeowners insurance policy does not include flood damage. This coverage must be obtained from a provider that associates with the NFIP (National Flood Insurance Program). The NFIP is overseen by FEMA, which is the Federal Emergency Management Agency. FEMA, in turn, is run by the Federal Insurance Administration.
On average, the general policy is around $300/year. If you live in a lours' area, your premium can be as low as $100/year.
A standard flood insurance policy is purchased from the NFIP. Under a “write your own program”, a policyholder obtains insurance directly from a private insurance company, as opposed to going through the NFIP. Your premium will be the same amount, regardless of purchase through the government or private company.
Most insurers offer three basic plans of coverage:
-Residential Condo building association
General property coverage will apply to apartments and business dwellings. Residential condo building association provides coverage for condominiums. Finally, your dwelling coverage applies to most residential homes. Each of the above has its individual limit in terms of coverage. When searching for a provider, focus on the service they provide, as opposed to the price. Since the federal government sets the rates, private insurance companies will attempt to gain your business through the service they can provide. One measure of quality service is the time it takes for a claim to be resolved. A worthy company will be able to pay off its claims in a timely fashion, as opposed to a competitor which may be struggling to process its claims within an acceptable window of time.