Flood Insurance Can Be Beneficial

The National Flood Insurance Program, also known as NFIP, caters to various New York based communities for quality insurance. However, you should fully understand flood insurance before-hand. To suit this purpose, the Federal Emergency Management Agency has come up with some things that everybody should know about flood insurance.

Here is a look:

Flood insurance is easily available. It is easy to buy flood insurance. You just have to live in an active NFIP community.  The people who can buy flood insurance include Condo owners, Renters, business owners and homeowners. The policy can be purchased directly from a local insurance agent. Flood insurance is something that is not required all the time, but should always be considered. Many areas have flood insurance defined by the law as a prerequisite for individuals who have their homes under a mortgage. But flood insurance should be opted for as a means to avoid any mishaps. It is important that you ask for flood insurance options from your agent to offer a better protection for a big investment.

You should be fully aware of the coverage limits to be insured in a complete manner. The maximum coverage for the buildings amounts to $250,000 under certain policy types. This limit is meant for condos and single-family residential buildings. The maximum limit in terms for covering the contents on all sorts of residential buildings goes up to a total of $100,000, offered to renters. The average annual premium for flood insurance can go up to $570 per year.  For people living in an area lying in the low-to-moderate risk zones, an option to go with the lower-cost Preferred Risk Policies are available for as low as $129 annually.

The insurance limit for the various commercial structures goes up to $500,000, each for the contents and the building. It is important to be insured against floods. However, usually, there is a 30-day waiting period before the policy can actually become effective. After buying flood insurance, the insurance agent offers the buyers with a copy of the insurance policy. For people with a flood insurance policy, it is important to renew the policy each year. Policy holders are sent premium notices along with the renewal policy documentation directly. However, it is important for the policy owners to stay in touch with their agents on an annual basis to be regularly updated on their policy.

The aim behind flood insurance is to help people secure themselves against the floods and help to reduce the monetary loss to a minimum. In short, the benefits of the flood insurance far surpass the expenses involved.

- Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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