WEDNESDAY, FEBRUARY 16, 2022
Are you buying a home? Getting ready to move into a condo or apartment? Now’s the time to look into Flood Insurance coverage options.
When it comes to Flood Insurance, there are two options for your provider: the National Flood Insurance Program and receiving coverage private coverage. You may be surprised to discover that most insurance agents can help you get either one. But there are some key differences between these two options that are worth paying attention to.
How is My Premium Determined?
For the National Flood Insurance Program (NFIP), you can assume the majority of what goes into your premium is based on the location of your home in relation to the flood maps of your region. These maps rank areas as high, intermediate or low risk for floods. However, it is possible that a homeowner in an intermediate risk area will pay the same amount as a homeowner subject to the same level of risk in Delaware. This premium will be the same no matter what agent you purchase your coverage from.
With Private Insurance there are more nuanced methods of determining your premium. Many more factors will weigh on the cost to you, including geographic region, age of home and type of home. More factors can lead to better pricing for the consumer in many cases.
What Happens if a Flood Damages (Or Destroys) My Home?
Under the NFIP, there are caps on your payout. Those caps are standard nationally: $250,000 for the physical structure of the property and an additional $100,000 for the contents of the property. If the damage or cost to rebuild exceeds these numbers, the difference will have to be paid by you.
With private insurance you get what you pay for. You can always purchase coverage that will cover the full costs of rebuilding and repairing your property. In addition, unlike under the NFIP coverage, private insurance can cover the cost of relocating and living expenses while your home is being repaired or rebuilt.
How Do I Know Which Coverage is Best for Me?
Your best resource for determining the coverage that is right for you is us! Your experienced agent would be more than happy to discuss your options for flood coverage. Together we can make sure you’re protected no matter what happens!