Top 5 Reasons To Purchase Flood Insurance

flooded living roomHome ownership can be very rewarding. While no one really wants to think about home insurance it can be one of the best preemptive strikes to protecting your investments, your home arguably being one of the most important. Whether or not you live in a floodplain area, you may be able to purchase flood insurance. Flood insurance services are provided under federal backing through the National Flood Insurance Program or NFIP for short. Those who choose to purchase flood insurance through this program do so in exchange for steps taken to try and reduce damages caused by floods in their communities. The following points are some of the best reasons to purchase flood insurance.

  1. Benefits received from the NFIP are fully yours to use in flood damage recovery. You don’t have to pay back what you receive from the program, nor do you have to worry about your insurance premiums increasing should you have to make a claim against your policy.
  2. Basement coverage includes the most expensive things that make your household functional. It can be stressful under normal circumstances when major home appliances like your washer or your furnace break down which is cause for repair or replacement. During an emotionally elevated time, it can be even more so. Flood insurance can provide some peace of mind by covering things like laundry machines, furnaces, pumps, freezers, and utility connections.
  3. You don’t have to worry about waiting for what feels like ages to receive claim payment. Under this particular type of insurance policy, you have the capability to request a partial advance on your benefit payment. In other words, as soon as the flood subsides you can get some money right away to help get repair and recovery jumpstarted. This can make a huge difference in getting back to normalcy more quickly.
  4. You can feel confident in knowing that assistance will be paid to you. A lot of insurance policies may have you worried about whether or not you will actually get reimbursed for the necessary expenses of recovery. The NFIP is federally backed. You will get reimbursed. The President doesn’t even have to declare a state of emergency for the flood insurance to be utilized.
  5. Don’t own a home? No problem. If you rent you are able to purchase renter’s insurance through the NFIP as well. Whether you are renting your home or apartment or a business space you can have your personal belongings covered by the policy.

One caveat of purchasing flood insurance with the NFIP is to do so in a timely manner. Plan ahead and make sure you have a general idea of when flood season starts (if you live in such an area) as you must wait 30 days before coverage kicks in. A second caveat is that your community must be a participant in the program in order for you to buy insurance through them. Not sure if your community participates? You can find out for sure by going to the Community Status Book. Talking with your insurance agency about your options can provide peace of mind in the present and in the future.

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Why You Should Consider Flood Insurance

If you live near the coast, especially during this winter we’ve had, you may know first hand the destructive power the ocean and water can have, and the disastrous effects it can leave behind. Flooding is a real risk and is one of the most commonly occurring natural disasters in the country! Flooding can cause irreparable damage and can be extremely expensive. If you do not have flood insurance, it could cost you thousands.

Who needs Flood Insurance?

Most general homeowner’s insurance policies do not include flood insurance. They may include water damage caused by certain things like a burst pipe or a leak in the roof, but severe water damage caused by flooding may not be covered. Flooding can happen anywhere to anyone; certain homeowners are actually required to have flooding insurance if their home is located in a high-risk flood area. For homes in these high-risk regions, as defined by the Flood Disaster Protection Act of 1973 and the Flood Insurance Reform Act of 1994, flood insurance is mandatory due to the higher likelihood of disaster.

Even if you’re not located in one of these high-risk zones, flooding is still a major possibility. Your home does not just have to be near the ocean or some body of water, it happens everywhere. Almost every region of the United States has experienced some form of flooding. Don’t wait for it to happen to you, one inch of flood water can cause $20,000 worth of damage! Protect your home and your financial stability before it is too late! Better safe than sorry right?

John J. Walsh Insurance has a variety of flood insurance options available for anyone! We offer low premiums and differing levels of coverage. Let John J. Walsh Insurance protect you and your home from the risk of disastrous flooding! Contact Walsh Insurance today to Inquire about our flood insurance programs!

3 Myths About Flood Insurance

Many homeowners who are in the flood zone are required to purchase flood insurance and many ponder if your home is flooded, is the insurance going to cover you? Three factors are going to affect the final decision: the value of your home, the level of water damage, and whether you have flood insurance.

In addition to that, because regular homeowners insurance policies don’t cover flood water damage, you will need to purchase flood insurance. Floods don’t mean total loss, in fact, the average flood claim in the U.S is about $30,000.

So here are three myths that many people have about flood insurance

Myth 1: You must live in a flood plain to purchase flood insurance

This myth is actually false. You are most likely required to purchase flood insurance by your mortgage company. However, even if you live outside of a flood zone, you can still purchase it and it is cheaper than someone living in a flood plain. The price of insurance via the federal flood insurance program tends to be based on standardized rates plus the home’s value, and if the location is located in a flood zone. According to Property Casualty Insurers Association of America, the average price for flood insurance is about $600 annually.

Myth 2: Flood Zones Don’t Change

False, flood zones change consistently, your home could be required to purchase flood insurance after a few years you bought the home. It is highly recommended to check the flood plain maps constantly.

There are a few ways you can check to see if you are in a flood zone:

  • Floodsmart.gov: Simply type in your address and it will tell you if it is in a flood zone, and provide information on risks, premiums, and available agents.
  • Contact an agent: You would want to consult a flood insurance agent before making your final decision and go ahead to purchase your flood insurance.

Myth 3: Flood Insurance Covers Everything

False, federal flood insurance policies top out at $250,000 so let’s say you have a $500,000 house that’s a total loss because of a flood, you will only recoup half of the total value to cover the house structure itself. In terms of personal possessions, a maximum of $100,000 is given under the federal program.

Those figures should be kept in mind before buying a high-value home in an area that has a possibility of being flooded. You also have the option of buying additional flood insurance that would cover claims above the national limits.

Contact a Flood Insurance Expert in Salem, Rockport, MA Today

If you have any questions or looking to purchase flood insurance in the Salem and Rockport area, contact John J Walsh Insurance today. We have the experience and knowledge to fully assist you in your journey to purchase flood insurance. We are proud to serve Salem, Rockport, Beverly, Marblehead, Danvers, Gloucester, and more. Contact us today at 978-745-3300 to learn more.

 

Flood Insurance Policies MA

Homeowners’ Insurance does not cover flood damage; in order to be covered you need to establish a Flood Insurance Policy. Here at Walsh Insurance, we will help you find the perfect flood insurance policy!

Flooding is ranked as the number one disaster that can occur, not only in Massachusetts, but in the United States, as reported by the Federal Emergency Management Agency.

More than 50% of residents who live in the designated flood zones do not have the proper flood insurance that will protect their home and their belongings in case of a flooding, and their homeowners’ insurance will not cover damages; more than half of the people who live in flood zones are completely and totally unprotected!

If you don’t live in the designated flood zone, it does not mean your home is immune to flooding; if you live in an area where it rains or snows, no matter how far away from a body of water you are, your home can and will flood, and if you don’t have flood insurance to cover the damages, you’re looking at a pretty big repair bill.

The agents here at John Walsh Insurance have extensive knowledge of flood insurance, as well as the national polices that are available for homeowners.

We are more than willing to assist our clients in finding the best flood insurance policy out there. For more information on the new Flood Insurance Policies, please give John Walsh Insurance a call at 978-745-3300.

Do you have an Updated Flood Insurance Policy?

Changes to the National Flood Insurance Policy will become effective on October 1, 2013; during this time there will be a number of chances to the current policy. Below are some of the new policies:

  • For those who have policies written or renewed after October 1, 2013, will see on average a 10% increase on their premiums
  • A Reserve Fund Ratio will be applied to each National Flood Insurance Policy (NFIP), expect for Preferred Risk and Group Flood policies. The reserve fund ratio accounts for about 5% of your total premium.
  • The Federal Policy Fee will also increase for policies written or renewed after the October deadline. For Non-Preferred risk policies, it will increase from $40 to $44, and for Preferred risk policies, it will increase from $20 to $22.
  • For those who are in a flood hazard area, and do not have flood insurance, there is now a 30 day waiting period. The NFIP has now eliminated the no waiting period due to lender requirement.
  • The preferred risk policies issued under extension program, will now see an annual increase of 20%.
  • The pre-firm will see an increase of 25% above the rates, in effect on or after October 1, 2013.
  • For Properties in flood hazard areas and Zone D, who have policies that are lapsed or new, will not receive an extension of subsidy.

For more information on these new updates to the Flood Insurance Policy, please contact Columbia Insurance at 781-598-5000. Our associates will be able to get you the policy you are looking for, before these changes come into effect in October 2013.