![]() ![]() ![]() The amount of your deductible is a factor in determining your policy premium. Deductible - Like all insurance, you can buy your policy based on paying an initial amount, called a deductible, with the insurance company paying costs over the deductible.Coverage - Coverage can include your home structure additional structures on your property the furnishings and contents of your home.Risk - The risk of flooding in your area, as defined by the NFIP.The price of a flood insurance policy is based on three main factors: To find out if your area participates, check the National Flood Insurance Program Community Status Book. However, your lender may require flood insurance as a condition of the mortgage loan, even if it is not mandated.įor those who wish to purchase flood insurance and are in a low-to-moderate risk area, your local community must be a registered participant in the National Flood Insurance Program. The federal government does not mandate flood insurance in a low-to-moderate risk area. 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. Rates are based on the risk of flooding in your geographic area. Commercial insurance agents sell flood insurance, not the federal government itself. The potential cost of recovery from flood damage is so high that only the Federal government provides flood insurance. While most homeowner policies cover water damage that is sudden and accidental, like damage from burst pipes or water heaters, flooding from a natural source requires a separate flood insurance policy ![]()
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