Many homeowners make the mistake of thinking that they will be covered for flood damage by their regular homeowners insurance coverage. This is not necessarily the case, even if insurance covers hurricanes and windstorms, as the majority of policies will not cover flood damage at all. Those that are required to have flood insurance and those that would like it may need to use the National Flood Insurance Program to buy a policy.
What is the National Flood Insurance Program?
The National Flood Insurance Program (NFIP) was established by Congress in 1968. Its aim is to make flood insurance accessible to members of communities that participate in the program. The program is managed by FEMA and involves 90 insurance companies that can sell policies to home and business owners and to renters.
Is Flood Insurance Mandatory?
A property that is mortgaged by a federally regulated or insured lender and that is located in an area that is designated as high flood risk (1%+ chance of flooding in a year) must have flood insurance in place.
Recent Comments