How To Buy Flood Insurance

BOWN BROOK, NJ, 9/18/99 -- Darrell Potter Jr. ...

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How To Buy Flood Insurance

Buying Flood Insurance is remarkably similar to buying any other type of insurance, so why is it do you think that only around 20% of the households which need flood insurance have actually got any, that’s one estimate anyway, but don’t you think that’s a bit disturbing? I sure do.

Let’s look at a few simple questions which can help you to get the best flood insurance for your property.

Q – Isn’t my home covered for floods with my ordinary household insurance policy?

A – NO, there, that’s probably sorted out a good half of you already.  You might think that you’re covered but you definitely ain’t . . . homeowners insurance policies do not ordinarily insure against flood damage.

Q – I live in a high risk area, can I even get flood insurance or do I just trust to luck?

A – If the community in which you live participates in the NFIP (and around 20,000 of them do) then you’re definitely eligible for flood insurance . . . check it out before it’s too late.

Q – I’ve heard that if my home is damaged by a flood and I don’t have insurance then I can have federal disaster assistance to pay for the damage . . . so why should I bother with flood insurance?

A – You really cannot rely on federal distance assistance. Unless the president formally declares that there’s a disaster there isn’t any assistance to be had, and even if you do manage to pocket some cash to help pay for the damages it’s a low interest loan . . . and loans have to be repaid. You get nothing for nothing!

Q – My family have lived in these parts for more than 40 years and there’s never been a flood yet. Why should I pay for flood insurance?

A – Floods can happen anywhere, and just because it hasn’t happened yet it certainly doesn’t mean that it can’t happen soon. Around 20% of flood insurance claims are from areas which are classified as having a moderate to low risk of flooding, they might never have flooded before, but guess what, they still flooded just the same. Flood water doesn’t discriminate, it takes the easiest path and if your property is in that path . . . whooosh!

Q – Hey, I’ve already been flooded out once and had federal disaster assistance. Do I need to have some flood insurance now?

A – You sure do! If you’ve had any type of federal loan or grant then you have to buy flood insurance for the whole time that you live in the property, and if you move house then you’ve got to tell the new owner about it too . . . the government won’t keep on bailing you out you know, you’ve got to help yourself.

Q – I live in a moderate to low risk area, will my flood insurance policy be cheaper than those who live in high risk areas?

A – People living in moderate to low risk areas will often qualify for a Preferred Risk Policy with prices starting from only $129 per year, not a bad price for peace of mind is it?

Q – Okay I’m convinced. Where can I buy some of this flood insurance?

A – There are a wide range of insurance companies which can offer the NFIP flood insurance policies for your property.  Why not contact your usual insurance agent or search online for starters. You know it makes sense.

Q – Flood insurance . . . do you need it?


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