Meanwhile, law makers in Washington D.C. approved legislation that will limit premium increases for flood insurance to eighteen percent annually. Before, homeowners were seeing as much as a 25 percent increase annually. For some homeowners that must get flood insurance, or may be facing buying a policy if FEMA remaps their flood plain, understanding how the policy works is a must. Here are a few essentials:
-Flood insurance is essentially offered through FEMA. While private carriers are allowed to issue policies, the policies are subject to extensive regulations on terms, conditions, and exclusions, with the federal government acting as an underwriter.
-The policy covers both building property and personal property. It covers situations in which flood waters come into a home or business from the outside. Many people confuse this with sewer back up, which covers situations in which a basement may flood because a sewer or drain backed up. Water back up is covered by a rider on your homeowners policy, which we believe is important to have.
-It is imperative to get coverage before there is an impeding flood. After an insured buys the policy, he or she must wait thirty days before the policy goes into effect. If loss occurs in that thirty day wait time, the insured will not be covered.
-Flood insurance is relatively cheap. Some insureds can buy the policy for as little as eighty dollars a year.
If you have any questions regarding flood insurance, please stop in the office.