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How to insure home and property from floods in the USA PDF

Hurricane Dorian approaching US territory made many Americans think about what would happen if they had to survive catastrophic floods and how to pay for the damage caused by the elements. Is it possible to insure against floods?

Unfortunately, homeowner insurance will not be able to cover any flood losses. According to Lynn McChristian, a spokeswoman for the Insurance Information Institute, about half a century ago, this type of coverage excluded such damage. Tenant insurance also does not cover flood losses, USA Today writes.

?This is an uninsured risk,? she said, ?floods cause such enormous damage to a huge number of houses that it can destroy the insurer.? Instead, the federal government acts as an insurer for millions of homes in areas with the highest risk.

What is flood insurance?

Flood insurance policies - separate from homeowner and tenant insurance - are backed by the National Flood Insurance Program and are designed to replace your property and restore your home after flooding. NFIP policies cover up to $ 250,000 for your home and up to an additional $ 100,000 for your property.

"The limits are not too high for some regions of the country," says Tom Santos, vice president of federal affairs at the American Insurance Association. ?Therefore, homeowners (in these areas) should consider purchasing additional coverage from private insurers.?

Most mortgage lenders require flood insurance for homes located in areas of increased risk of flooding. Similarly, if your home is located in such a zone, and you previously received federal aid in the event of natural disasters, you must insure yourself against floods in order to be eligible for assistance in the future.

How it works?

There is a 30-day waiting period - only after its expiration the insurance will take effect. Therefore, you will not be able to quickly insure yourself when a hurricane is already stepping on your state. The policy should also be updated annually. If you understand that you need coverage, plan ahead. Most insurers implement NFIP policies, so contact your insurance agent or broker. You can also get a referral agent by contacting the NFIP help center at 1-800-427-4661.

The amount you will pay depends on the characteristics of the franchise and your home, including the objective risks of flooding. Although the average annual premium is between $ 600 and $ 700, it is valid for those living in low- and medium-risk areas. ?If you live on the coast, it can be thousands of dollars, because the risk is greater,? says the expert.

To apply for flood cmpensation, contact your homeowner service provider once the weather conditions have returned to normal. The damage will be assessed and determined which policy should cover one or another part of it. It is important to provide inventory and photographs of the property, both before and after flooding. Ultimately, NFIP will reduce the check for flood losses.

What happens if you do not have insurance?

If the flood caused damage to your home but you do not have flood insurance, be prepared to pay for most of the losses yourself. The Federal Emergency Management Agency offers small disaster subsidies, which average $ 5,000 per family, much less than the average insurance benefit of $ 30,000.

The Small Business Administration also provides homeowners and tenants with low interest loans that can be used to repair or replace homes and damaged property in areas declared disaster areas. But ultimately they must be returned.

This is why it is important that homeowners and tenants assess their risk and provide adequate insurance coverage. Flood insurance is important not only for people in hazardous areas. Every fifth payout occurs to people from low- and medium-risk areas.

 

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0 #1 property in the USA 2019-12-06 20:22
How to insure home and property in the USA
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