The recent flooding in the wake of Hurricane Hermine reminds us that living in Florida can be a soggy business. Since Florida is essentially flat, the entire state is at risk for flooding. If you’ve been reluctant to buy flood insurance because of the cost, we’ve got some good news for you.
It’s true that flood insurance rates have been rising. The National Flood Insurance Program (NFIP) is still pulling itself out of $24 billion dollars of debt incurred following losses from Hurricane Katrina and Superstorm Sandy, and government subsidies of flood insurance rates are being phased out. However, at L & M Insurance Group, we represent several private companies that write flood insurance policies at a more competitive rate than the NFIP policies.
Here are some basic things to remember about flood insurance:
- Flood insurance is not included in a standard homeowners insurance policy and must be purchased separately.
- If you live in a flood zone and have a mortgage backed by a federal lending guarantor (Freddie Mac, Fannie Mae, etc.), you must carry flood insurance.
- Even if you don’t live in a high-risk area, you should consider buying flood insurance to protect your home. Be aware that 25% of flood claims come from preferred zones B, C and X.
- Even a few inches of water can do major damage. The average flood insurance claim is $43,000, according to FloodSmart/gov.
- The average NFIP flood insurance policy costs about $700 year. However, at L & M Insurance Group, we represent several private companies that could save you a substantial amount on your policy.
- NFIP flood insurance covers your home and your possessions (with some exceptions). Your home’s structure can be insured up to $250,000, and its contents can be insured up to $100,000. Private flood companies offer higher limits, up to $500,000 on your home, and up to $250,000 for contents.
- With NFIP policies, there is a 30-day waiting period after purchase before flood insurance goes into effect. With most of our private companies, there is no waiting period after the policy is bound.
Consider buying flood insurance to protect your greatest asset—your home. Contact us today for a free quote.