What you need to know about flood insurance
TYPES OF FLOOD INSURANCE
National Flood Insurance Program (NFIP)
is a Federal program, managed by the Federal Emergency Management Administration (FEMA). There are three components to FEMA: to provide flood insurance, to improve floodplain management and to develop maps of flood hazard zones.
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Private Flood Insurance
The policy includes the same coverage as the NFIP policy. Underwriters agree that in no event would a loss be denied under the Private Market Flood policy that would have been settled under the FEMA National Flood Insurance program Standard Flood Insurance policy Dwelling form
WHY DO I NEED FLOOD INSURANCE
Homeowners Insurance Does Not Typically Cover Floods
Most important is the fact that a standard homeowners insurance policy typically doesn't cover flood damage. Also floods can occur anywhere, you should consider purchasing a separate flood policy. So, are you prepared? Beyond readying your home and developing a family emergency plan, being prepared for a flood means understanding a bit about flood insurance.
Flood Insurance Is Required
If your home falls in a high-risk flood area and you carry a mortgage from a federally regulated or insured lender, your lender is legally mandated to require flood insurance on your property. Typically, that's not the case if your home falls in a moderate-to-low risk area. However, a lender may require you to hold flood insurance at any time — even if the company is not legally mandated to do so.
Flood hazard areas identified on the Flood Insurance Rate Map they are identified as a Special Flood Hazard Area (SFHA). SFHA are defined as the area that will be inundated by the flood event having a 1-percent chance of being equaled or exceeded in any given year.
Elevation Certificate is an important tool that documents your building's elevation. If you live in a high-risk flood zone, you should provide an Elevation Certificate to your insurance agent to obtain flood insurance and ensure that your premium accurately reflects your risk.
Waiting Period. The time between the date of application and the policy effective date.