There are two sides of a coin, same way there are two sides of our live too – one is good and the other one bad. Its good when your life is going on smoothly filled with happiness and fun but it’s bad when there are some sorrows with you. Humans have the power to strive this, live through these and still be happy – one such way to be prepared to face the natural calamities and secure your future against the damage caused by them.
In United States, floods happen regularly. In recent history as well, we have seen a lot of times when the entire cities along the Mississippi river were under water. However, the area around Mississippi is not the only area affected by flood. Floods can happen at any place due to many reasons out of which overflowing of rivers and excess of rainfall are main. National Flood Insurance Program (NFIP) has been started by the government to give relief to the people by providing insurance against flood.
Do you remember Hurricane Katrina? The winds of hurricane flew flood water with them to the areas where a flood had never happened before. People claimed home insurance but there claims were denied stating that insurance doesn’t cover damage due to flood.
So here I present you with some facts about flood insurance which may not be clear in minds of most of the people. You have to read on if you don’t want to be a victim of unexpected and unwanted floods.
- Insurance policies of homeowners, renters and business property do not cover flood insurance. For that there is a separate insurance policy by NFIP which may cover contents policy as well, based on the deal you are undergoing.
- Either the property owner or renter can take the policy, either for their home or business.
- It doesn’t matter if you live in a high risk zone, you can still take a NFIP policy. Only thing you have to see is that your community participates in the NFIP.
- It’s out of the case if you have been flooded before or not. You can opt for a policy irrespective of that as long as your community participates in the NFIP.
- Even if you don’t live in a flood zone, you still need a flood insurance policy. Statistics shows that floods do occur regularly in areas that are not under flood zone. Another startling statistic is that almost 25% of NFIP’s claims are from low to medium level risk zones.
- If you are living in a flood zone, you have to have a flood insurance policy to get a home loan.
- FEMA disaster coverage may not be able to help you in half of the flood cases. FEMA helps only when area is declared as a disaster area, and this happens only in 50% of flood cases. So if flood occurs, you will have to buy flood coverage to get the benefits. Then why not take it beforehand!
- You can buy flood insurance policy at any time, it may be immediately before or during the flood. It’s just that the policy will not cover any past losses. It will cover only future losses.
So take a flood insurance policy and don’t worry, have a sound sleep as National Flood Insurance Program is here for your rescue from floods.
