Flooding is unfortunately a quite often natural disaster happening to American people, especially those who live in the area near the Mississippi river. But along with these ones, there are unexpected regions that suffer from this natural disaster and as a result, the National Flood Insurance Program came into being to protect those people affected by the hazard of flood.
Many people however neglect this issue when it comes to purchasing a good qualitative insurance plan to contain as well the flood insurance coverage. This happens due to the following seven myths related to flood insurance:
Myth no.1 – The insurance coverage that many homeowners, business property owners and renters buy include the claims for damages incurred by flooding.
This is wrong. None of these insurance policies cover the claims resulted from flood. The National Flood Insurance Program instead is the one to offer the necessary coverage for businesses and homes. One can as well add contents coverage on the flood insurance policy.
Myth no.2 – Flood policies can be purchased merely by homeowners and business owners.
The real fact is that many of home owners, condo owners, renters, business owners and participating communities in NFIP can reach for flood insurance policies within the following limits:
* Home and condo owners – structural coverage at $250,000 and contents coverage at $100,000.
* For renters the contents coverage at $100,000.
* For business owners and renters – structural coverage at $500,000 and contents coverage at $500,000.
Myth no.3 – Flood insurance can not be purchased in case you live in a high-risk area.
The real fact is that you can buy coverage through NFIP regardless of your living area.
Myth no.4 – In case you have been flooded before, you can not purchase flood insurance.
The fact is that you can purchase flood insurance as long as you live in a community participating in NFIP.
Myth no.5 – You can not purchase a flood insurance coverage right before a flood or during the flood.
The fact is that through NFIP you can purchase flood insurance at any time, but usually you need to wait up to 30 days for this one to become effective. At the same time you should know that the policy doesn’t cover a loss that is in progress but the losses occurred only after the policy turns into effective.
Myth no.6 – Living in an area that is not flood prone, then there is no need for flood insurance coverage.
The fact is that almost 30% of the claims that are registered through NFIP coverage belong to home owners living in low risk areas to medium risk areas. But living in a high-risk region you could probably not benefit from any kind of loan as long as you don’t have a flood insurance coverage for the house you need to use as collateral.
Myth no.7 – The FEMA disaster assistance will pay for the damages incurred by flooding.
The real fact is that FEMA doesn’t provide any assistance unless your area is declared a disaster area, and you should know that less than 50% of floods are declared like this, so don’t count on it.