NFIP and Flood Insurance

Natural disasters always bring havoc to the lives of people. Most often, natural disasters result to financial disaster. One of the most frequently occurring natural disasters in the country is flood.

Flood may happen everywhere. Even if you are not living near riverbanks, coastal areas and flood zones, flooding may occur and damage your properties.

It is a common misconception among Americans that overflowing of water from sewers can be called flooding. This is wrong because flood means the rising and overflowing of bodies of water onto a land that is normally dry.

Protect yourself from a financial disaster that flooding may bring. Get yourself a flood insurance policy, especially if you are living in flood zones.

Your homeowners insurance usually does not carry a policy that will cover you in the event of flood damage. It does not also cover damages cause by melting snow.

You can get your flood insurance from the National Flood Insurance Program (NFIP). The NFIP is an agency under the Federal Emergency Management Agency (FEMA) and is supported by the U.S. federal government.

It is a requirement that for a homeowner to purchase the flood insurance, his community must comply with loss prevention guidelines established by FEMA. Homeowners who are interested in buying a policy that will protect their properties from flood loss and damage are advised to find out first if their communities are part of the Community Status Book of NFIP.

Flood insurance is not that expensive to buy. The average cost of a policy is slightly higher than $350 annually. The price of a policy varies on the area’s proneness to flood.

You can purchase a policy for as low as $100 under the Preferred Risk Policy. This risk policy covers your house and personal belongings with only one premium.

You may be entitled to receive a discount in flood insurance premium provided that your community has exceeded the minimum standards set forth under the floodplain management program of the NFIP.

You can find out if the community where you live is eligible to receive reductions in premiums of flood insurance on the Premium Reductions for Selected Communities web site of FEMA.

To minimize the inconvenience of having so many agents handle your insurance policies, let the one who wrote your automobile or home insurance policy write your flood insurance policy.