Please Explain Floods.
It can flood anywhere it rains. The flood itself is a temporary condition in which two or more acres of typically land or two or more pieces of property are overcome by mudflow or water. Hurricanes, overtopped levees, clogged drainage systems and rapid accumulation of rainfall can all cause a flood.
Just because you’ve managed to avoid flooding in the past doesn’t mean you’ll make it through the next rainy season unscathed. The risk of flooding isn’t based solely on history; it’s also based on rainfall; collected tidal-surge data, the flow of local rivers, topography, changes due to development and flood control measures.
Flood hazard maps have been developed to illustrate the degrees of risk found in your neighborhood, which helps to set the cost of flood insurance. A lower degree of risk will always reduce the flood insurance premium.
Does my regular homeowners policy cover flooding?
Damage caused by a flood is not usually covered under a standard homeowners insurance policy.
If my home becomes flooded, will federal disaster assistance pay for the damages?
Federal disaster assistance usually takes the form of a low interest loan that is meant to help pay for flood damage, not your personal losses The loans are only available when the president formally declares a disaster, and the need to be repaid along with the mortgage.
I’m not sure why I need a flood insurance policy; my community has never suffered a major flood.
Flooding can take place in moderate and low risk communities as well as high-risk regions. Inferior/outdated systems for drainage, rapid accumulation of standing water or rainfall and broken water mains can all spark a flood. In regions with a high-risk of flooding, there is at least a one in four chance of a flood during a thirty year mortgage. These simple realities are why a flood insurance policy is legally required for buildings in high-risk areas one condition of receiving a mortgage from an insured or federally regulated lender.
What will happen if I want to purchase more insurance than is offered by the NFIP?
Private insurance companies will often offer a product that provides limits above and beyond those of the NFIP, it is referred to Excess Flood Protection. To further research this option, please contact a specialist from Elder Insurance Services LLC.
Is flood insurance available if I’m currently renting a home or commercial building?
If you reside in a region that participates in the NFIP; you will be able to obtain flood insurance to cover the contents of your business or home.
I reside in a community with a high-risk of flooding. After my residence was damaged by floodwaters, I received federal disaster assistance. Will I need to purchase a flood insurance policy now?
If you reside in a Specialized Flood Hazard Area (SFHA) and have received assistance in the form of a federal loan or grant, it will be necessary to maintain a flood insurance policy as long as you own the building. If you do sell the building, you will be required to inform the owner of the requirement to maintain flood insurance. Failure to abide by the requirement to carry flood insurance may result in the denial of future federal disaster assistance.