Flooding can cause significant damage to homes and businesses, and without proper insurance coverage, the cost of repairs and cleanup can be substantial. If you live in an area prone to flooding, such as the state of Florida. In this article, we’ll discuss 10 things to consider before purchasing flood insurance for your Florida home.
- Determine Your Flood Risk
The first step in purchasing flood insurance is to determine your flood risk. This can be done by checking your property’s flood zone, which can be found on the Federal Emergency Management Agency (FEMA) website. Understanding your flood risk will help you determine the amount of coverage you need. A large portion of Florida is in a flood zone, but it is essential to know what flood zone you are in to see what your risk is.
- Know What’s Covered
Before purchasing flood insurance, it’s essential to understand what is covered by your policy. Flood insurance typically covers damage to the structure of your home or business and its contents, but it may not cover everything. Standard homeowners or hurricane insurance excludes flood damages from insurance coverage. Be sure to read your policy carefully to understand what is covered.
- Choose the Right Policy
There are two types of flood insurance: a standard policy offered by the National Flood Insurance Program (NFIP) and a policy offered by a private insurance company. The NFIP policy is available to residents of participating communities, while a private policy is available to residents in any community.Private flood insurance markets have been continuing to grow in the past 5 to 10 years. Be sure to choose the right policy for your needs.
- Consider the Deductible
When purchasing flood insurance, it’s important to consider the deductible. The deductible is the amount you must pay out-of-pocket before your insurance coverage kicks in. A higher deductible will decrease your premium compared to a lower deductible, but be sure to choose a deductible that you can afford and that makes sense for your budget.
- Know the Waiting Period
There is typically a 30-day waiting period for flood insurance to take effect. Be sure to purchase your policy well in advance of any potential flooding so that you are covered when you need it. If you are closing on a home purchase, there can be overrides to the 30 day wait. Make sure to talk to your independent insurance agent to understand the types of waiting periods different flood insurance companies offer.
- Consider the Cost
The cost of flood insurance varies depending on your property’s flood zone and the amount of coverage you need. The higher the value of the home, the higher the replacement cost, the higher your insurance premium may be. Be sure to compare quotes from multiple insurance companies to find the best coverage at the most competitive price.
- Take Inventory of Your Possessions
Before purchasing flood insurance, take an inventory of your possessions. You have separate coverage limits for your property and the contents inside. Make sure you have the correct value of your possessions in the home like sofas, televisions, jewelry, etc. This will help you determine the amount of coverage you need for your contents.
- Understand the Claims Process
In the event of a flood, it’s essential to understand the claims process. Be sure to review your policy and understand the steps you need to take to file a claim. Most carriers have similar processes, but understanding your flood insurance carriers protocols can make life a lot easier in the event of a claim. You can also ask your independent insurance agency for advice on the claims process.
- Regularly Review Your Coverage
Flood risk can change over time, so it’s essential to regularly review your flood insurance coverage to ensure that you have the right amount of coverage for your needs. Talk to your insurance agent about how coverages can evolve year over year.
- Work with an Insurance Agent
Finally, consider working with an insurance agent to help you navigate the process of purchasing flood insurance. An insurance agent can help you find the right coverage at the most competitive price and answer any questions you may have.
Overall, purchasing flood insurance is an important step in protecting your home or business from the financial damage that can result from flooding. By considering these 10 things before purchasing flood insurance, you can ensure that you have the right coverage for your needs. Contact us at (305) 452-0587 or visit our website www.ensureup.com to learn more about how we can help you find the right flood insurance coverage for your needs.