7 Facts About Flood Insurance

Flood Insurance - Residential & Commercial

HDA Insurance has compiled the following 7 facts regarding Flood Insurance Policies and coverage afforded under such policies.   The following items are only displayed to offer the common understanding of the topic and in no way to be used as a determination, change or modification to the actual policy verbiage written by the National Flood Program.

  1. Every Building Is In A Flood Zone
  2. You Can Buy Flood Insurance In Any Zone
  3. Building and Contents Coverage Are Purchased Separately
  4. You Can File A Flood Claim Without The Declaration Of A Federal Disaster
  5. The Standard Flood Insurance Policy Is Not A Guaranteed Replacement Cost Policy
  6. The Standard Flood Insurance Policy Limits Coverage For Basements
  7. The Standard Flood Insurance Policy Excludes Time-Element Exposures

The National Flood Program (NFIP) is a division of FEMA, all bills and legislation regarding the program are voted in by Congress.  Insurance Rates are based on Flood Zones and coverage offered.   It is not possible to shop around in order to seek a ‘cheaper’ rate since it is a Federally Mandated program and rates are approved by Congress.

Although many insurance companies may offer Flood Insurance, each of them acts as a Servicer for the National Flood Program and are paid a servicing fee for handling the transactions.

In order to purchase Flood Insurance, an Elevation Certificate will be required which you may obtain from your local city’s engineering or building and safety office.  There is a 30 day waiting period for coverage unless the coverage is required and is a condition of a mortgage loan.

The purpose of Flood Insurance is to provide coverage for damaged caused to property and/or contents directly by Flood.

For further questions, details and/or consultation, please contact a licensed representative at:  (877) 931-3368