Understanding the National Flood Insurance Program

Your home is one of your most important investments that you’ll ever make. It’s where you hold all of your belongings and lay your head down at night. If something tragic were to happen to your home, you would be left with nowhere to go and all of your possessions would be destroyed.

One of the common tragedies that strikes thousands of homes across the United States every year is flooding. While flooding is always a detrimental peril, not having the proper insurance policy can make the situation a thousand times worse. One of the most common misconceptions is that a traditional homeowner’s insurance policy will cover flood damage, but that couldn’t be further from the truth.

Because flood damage is so prevalent, and the options for coverage are relatively unknown, there is an organization that is working to ensure that everyone has the protection that they need, The National Flood Insurance Program. Additionally, they also help clients get the most affordable flood insurance to give them home the protection that they want.

At Longevity Brokers we are pleased to offer quality insurance products to the Denver area, including homeowner’s insurance. We are working to insurance all areas of your life at an affordable rate, everything from your home to your car.

What is the NFIP?

The National Flood Insurance Program was created by Congress in 1968 to help homeowners get the flood protection they need. They give this protection to personal homeowners, business owners, and renters. The program is administered by the Federal Emergency Management Agency and they would with over 80 different private companies.

Several different factors are going to impact the coverage that you can get from the NFIP. First of all, to qualify, you have to be within their coverage area to buy a policy from them. The next factor that is going to be used is the structure, size, and value of your home. All of these are going to play a huge role in how much you pay for your insurance coverage. The age of your home and its risk level are also going to be accounted for when you’re looking to buy insurance protection. With the NFIP insurance policies, the rates are set nationally and will differ from company to company.

Flood insurance plans protect two types of insurable property, both building and content coverage. The building coverage will protect your home and its foundation, the electrical system, A/C units, appliances inside of the home, and plumbing systems.  The other type of coverage that you would receive is content coverage, which will protect your items inside of the home. This will include anything from clothes, electronics, curtains, etc.

When you pay a plan through the NFIP, your protection is going to be limited to $250,000 for your house and $100,000 for all of your belongings. For most homeowner’s this is sufficient coverage, but if you want more protection, you can buy an additional excess flood insurance, and it will give you higher limits for both your house and your belongings.

Flood Insurance Protection

While the majority of homeowners assume that they aren’t in danger of floods, it’s still one of the most important insurance plans that you can buy to protect your home and everything inside of it. But the fact of the matter is that over 20% of policyholders that file a claim on their flood insurance policy don’t live in one of the areas that are designated as a “high-risk” area. This shows that regardless of where that you live, you’ll need to consider purchasing one of these plans.

There are a few things that flood insurance does cover and a few key expenses that they don’t pay for. Obviously, the plan is going to pay for any damage that the flooding does to your home and its foundation, but there are a few lesser known expenses that your coverage can pay for. One of those is debris removal from your home and property after the disaster. Additionally, your policy can even recoup some of the money you lose from food spoiling in your fridge.

While the plan covers the large expenses, there are plenty of bills that your insurance policy isn’t going to pay for, and those can leave you with some massive debts. One of those is any injuries that happen during the flooding. Any injuries that occur because of the flooding will have to be paid for by your health insurance policy.

Additionally, your flood insurance won’t pay for any belongings that you have outside of the home, like your porch, patios, or any pools. You may be able to get protection for these things under your homeowner’s insurance plan, but your flood insurance won’t pick up that bill.

Flood Insurance Summary

It’s vital that you get the homeowner’s insurance that you need to protect your home. While the homeowner’s insurance plans are a perfect tool, they won’t protect against everything, like flooding. Flooding can damage your home beyond repair. It can destroy everything inside your house and the building itself. If this were to happen, you would lose all of your belongings and not have any of the insurance protection that you need.

At Longevity Brokers, we are pleased to provide quality insurance plans to the Denver, Colorado area. If you have any questions about flood insurance or homeowner’s insurance, we would be pleased to answer those questions and ensure that you’re getting the best policy to fit your needs. You can call us at (720) 209-4598, or you can use our contact page, and one of our insurance agents will be happy to answer any questions.

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