top of page
The basics of Personal Flood Insurance?
Flood Insurance is a unique type of property insurance that helps cover your home's structure from water damage caused by floods. Flood insurance can help financially protect you from floods caused by; melting snow, prolonged rain, blocked storm drainage systems, levee dam failure, or coastal storm surges. In addition to the structure of your home, flood insurance can help cover the contents inside your home, such as; clothing, furniture, appliances, and electronics.
If you live in a high-risk area for floods, your mortgage lender may require you to have this type of coverage. Even though it’s not required to have flood insurance, it's still a good idea to consider purchasing flood coverage.
There are only two types of flood insurance policies; the National Flood Insurance Program (NFIP) and Private Flood Insurance. The NFIP is controlled by the federal government and is available in participating communities. Private flood insurance is offered by independent insurance companies and can help cover things that the NFIP doesn't.
The basics of personal flood insurance
The difference between Private Flood Insurance and NFIP
Most flood insurance policies are issued through the NFIP and have been for some time. The national flood insurance program is regulated by the federal government. Policies issued through NFIP are set with limits and coverages that may not fulfill the insurance needs unique to individual properties. While the national flood insurance program can benefit many homeowners in search of flood insurance, we advise clients to compare private flood insurance carriers also.
Private flood carriers can offer broader coverage and higher limits not offered through NFIP. Private flood companies also analyze each property individually, allowing the insurer to assess the risk of flooding your property. Private flood companies can also offer more customization on your flood insurance policy because they are independent and have their own reinsurance programs.
Private flood insurance carriers can offer many benefits and coverages beyond what is offered by NFIP, such as:
-
Up to a $4,000,000 coverage limit for your home
-
Up to $500,000 coverage limit for contents
-
Temporary living expense coverage
-
Pool repair/refill coverage
-
Detached structures coverage
-
10-day coverage waiting period
Private flood insurance or NFIP?
How much flood coverage do I need?
How much flood coverage do I need?
While NFIP offers maximum coverage limits of 250,000 for your home’s structure and $100,000 for its contents, Private Flood Insurance can cover up to $4,000,000 for your home and $500,000 for contents. Private Flood Insurance can also have a shorter waiting period of only 10 days, unlike the 30-day NFIP waiting period. Private Flood Insurance carriers can also offer Loss Of Use coverage, Replacement Cost Contents coverage, and Loss Avoidance Coverage, while NFIP doesn't.
Private Flood Insurance is usually not subject to similar regulations and restrictions as government flood coverage. Private flood carriers provide great coverage alternatives that are unavailable through the NFIP. These provisions under Private Flood Insurance can include the following:
Building property coverage covers the physical structure of your home, including the foundation, framing, walls, plumbing, roof, electrical wiring, heating, and air conditioning systems.
Contents coverage covers your personal belongings, such as furniture, clothing, appliances, and electronics.
Unattached structures coverage This type of coverage helps cover the physical structure of buildings on your property that are not attached to your home, such as a tool shed, detached garage, or gazebo.
Temporary living expenses coverage helps cover the expenses that the insured incurs while living in temporary spaces. These expenses include restaurant meals, hotel stays, etc.
Basement contents coverage helps cover the insured's personal belongings in their basement.
Why is flood insurance important for homeowners?
Unfortunately, a low-risk flood area does not mean no risk for flooding. A typical home insurance policy excludes flood insurance coverage; that’s why it's very important for homeowners to purchase flood insurance separately. Without flood insurance, homeowners are responsible for paying out-of-pocket damages caused by floods. Flood insurance can help financially protect you and your family and is very affordable when utilizing private flood carriers.
Why flood insurance important?
How we can help
How CPK Insurance Services can help you save on flood insurance
Our team of experienced agents is dedicated to helping you find solutions that best fit your unique needs, budget, and lifestyle.
.png)
Insurance all in one place
Purchasing your homeowners and auto coverage from the same insurer can provide savings of up to 25% overall!
.png)
Compare and Save
We compare multiple quotes from our network of top-rated insurance carriers to maximize your coverage and savings.
.png)
Automated Savings
When you purchase a policy from us, we review your policy every renewal to ensure you receive the best-valued coverages.
Protect what matters most
With a wide range of services and competitive prices, CPK Insurance Services offers an incomparable combination of personalized advice and quality service.
.png)
bottom of page