Think a homeowners policy completely protects in the event of a major natural disaster? When it comes to preparing for an emergency, it is crucial to recognize the importance of having the proper coverage for all elements of a natural disaster.
According to the National Association of Insurance Commissioners, thirty-three percent of households falsely believe that homeowners insurance covers floods. Considering that the Florida Emergency Management Association (FEMA) has stated that floods are the leading natural disaster in the United States, flood insurance is an investment that is not simply a frivolous expense – it’s a necessity. The reality concerning homeowners insurance coverage is that though wind or debris damage is covered under homeowners insurance policies; flood damage itself is not. Essentially, if a hurricane occurs, tears the roof off a house, and then water pours down into the house, the policy covers the damage. If a storm surge occurs and the property is located near a lake, causing the lake to rise and flood the dining room however, most homeowners insurance policies do not cover the damage.
Flood insurance coverage policies cost on average around $350 a year for Florida policies. Although many banks require flood insurance for high-risk flood areas, it is still strongly recommended that residents of Florida look into flood insurance coverage. In the United States alone, insured flood damage policies account for over $5.2 billion dollars. Of this $5.2 billion, a significant portion of those funds come from coastal regions such as Florida, Louisiana, Texas and Alabama. In addition, while many individuals think they will receive assistance in the event of a natural disaster if the damage is large enough, the fact is less than fifty percent of flooding disasters are eligible for relief. Policyholders in these areas are strongly urged to speak with an insurance agent to evaluate the benefits of flood insurance coverage as well as for options of coverage available.
The National Flood Insurance Program administers policies governing flood insurance. Though policies are purchased through insurance companies, the federal government had to step in to cover flood areas that were designated by state and local authorities, as insurance companies were refusing to take the more risky areas. As such, flood insurance covers many emergency situations such as: overflow of inland or coastal waters, unusual accumulation of runoff water, mudflow, or collapse of land along the shore of coastal waters.
To learn more call 1.888.525.2210 visit Floridainsurance.com.
