The Coverage of Flood Insurance

Floods is a kind of disaster that can not really prepare for. What lots of people don’t know is that their homeowner’s policies do not cover floods. Unfortunately, many people realize this too late. Many people do not know to go about getting flood insurance and what it covers.

So, what is the definition of flood insurance? A flood is a temporary condition in which more than two hectares of normally dry land or property are inundated by water or mud. Things such as hurricanes, rapid rainfall and clogged drainage systems can all lead to flooding.

In 1968 the U.S. government got involved by offering the National Flood Insurance Program (NFIP).  They provide flood insurance for homeowners, renters and business owners. This insurance helps people protect themselves financially in case of water related disasters.

The residential policy also can cover the dwelling. However, the content coverage is optional. It is the best way to get both cause floods usually destroy many items in the house. This policy has a 30-day waiting period after purchase before the policy will be effective.

The premiums are depending on whether your home in a high, moderate or low risk flood area. Premiums for low-risk occupancy start from $ 120 for the house and contents.

Only a few inches of water can make thousands of dollars worth of damage to your home or office.  Last year, the average flood damage was $ 33,000. Therefore, it is important to protect yourself with flood insurance through NFIP.

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