I’ve often said, if it rains at your house, you need flood insurance. Now it’s easier than ever for consumers to purchase coverage through the National Flood Insurance Program (NFIP).
The new NFIP direct purchase option lets consumers buy flood insurance faster and easier. WWW.FloodSmart.govallows buyers to explore flood insurance options, connect with a licensed agent and purchase directly online.
Homeowners’ insurance policies do not cover damage from flooding. Being able to buy flood insurance directly from the NFIP gives consumers another option and hopefully will lead to more people obtaining coverage.
If you live in a flood plain, your mortgage company may require flood insurance. However, in recent years, flooding has occurred even in areas outside designated flood plains.
I’ve been to numerous areas all over the state that have been flooded by natural disasters the last few years where property owners have told me that flood waters had never gotten anywhere close to their land before. Unfortunately, many of those people did not have flood insurance coverage.
Many people don’t consider purchasing flood insurance because they believe the premium will be prohibitive. If you feel that way, I encourage you to use the NFIP online tool to see how much it will cost to cover your property. If you do not live in a high-risk flood area, you may find the premium to be more affordable.
Being able to purchase a flood policy directly from the NFIP works for some people, but working with an insurance agent will remain a better option for others. One advantage to purchasing through an agent could be the ability to split annual premiums into monthly payments.
An agent can also verify that your property details are accurate on the application and walk you through the specifics of your coverage. The NFIP caps coverage for residential properties at $250,000 for the building and $100,000 for contents. If your property or contents are worth more than that, an agent can help you find more coverage in the private market.
Because the NFIP sets the rates for its flood coverage, the premium will be the same whether it is purchased directly from the NFIP or through an agent.
The NFIP’s website has a list of participating insurers that write NFIP flood insurance and a list of agencies that sell flood insurance. If an agent is interested in becoming eligible to sell NFIP flood insurance, information abut how to do that is available at the following link: Become a Flood Insurance Agent | Agents National Flood Insurance Program.
For more information about federal flood insurance, contact the NFIP at 800-427-4661 or go to www.floodsmart.com.
