Flood insurance coverage provides protection for destruction and financial devastation caused by floods. Even a few inches of water, although it may not seem like much, can cause serious damage resulting in thousands of dollars in repair and restoration costs.
Homeowner’s insurance does not typically cover flood damage-however flooding is ranked the #1 natural hazard in the U.S., occurring in and causing damages in all 50 states. Purchasing a flood insurance policy through Steffey Hatoway can protect you.
Although it may not seem as necessary as homeowners insurance, flood insurance is important if you want to keep your home safe and your possessions secure. Flood Insurance offers protection against losses that result from heavy and lengthy rain falls, storm surges, blocked storm drainage systems, snow melts, etc.
Different types of flood insurance policies are available based on your property’s location and flood history:
Standard Flood Insurance Policies
If you live in a community that participates in the National Flood Insurance Program (NFIP), your building and its contents can be covered by standard flood insurance. Indiana residents should be aware that the NFIP was established by the Federal Government to help communities who “voluntarily participate in the NFIP by adopting and enforcing floodplain management ordinances to reduce future flood damage.” To be considered a flood, the waters must cover at least two acres or affect at least two properties. You must apply for building coverage and contents coverage separately if you choose to invest in a standard flood insurance policy.
Preferred Risk Flood Insurance Policies
If your home or business is in a low or moderate risk zone, your building may qualify for a low-cost preferred risk policy. While you aren’t required to purchase flood insurance, residents in low-to-moderate risk areas, should consider a preferred risk policy which will protect your home and its contents if you are affected by a small flood or a larger flood that has extended into your low-to-moderate risk areas.
Private Flood Market – Non-FEMA
Private flood insurance companies assign risk and insure properties based on their own set of criteria. They are allowed to do things their own way because they do not receive government subsidies and are not a public entity. More often than not, private flood markets are less expensive than FEMA rates.
At Steffey Hatoway, we have access to both the FEMA rates and private flood insurance through Lloyd’s of London. As of 2016, about 90% of our flood insurance customers are being placed in the private flood market and many have saved hundreds, even over a thousand dollars by retiring their FEMA policy and moving to the private market. Please contact us today to shop your flood rates!