Top 10 Flood Questions

Here are the 10 most frequently asked questions about the National Flood Insurance Program (NFIP).

10. Can’t I just wait until it starts raining to buy Flood Insurance coverage?

Not if you want to be covered. Under most circumstances you’ve got to wait 30 days from the time the premium and application are received to be covered. So you can buy the coverage when it starts raining, but it won’t protect you until 30 days later. The only way to circumvent the 30-day waiting period is if your community has revised its flood map within the last year or this is your first purchase and it is required by a lending institution to close a loan.


9. Aren’t the NFIP limits too low to matter?

Not anymore. The 1994 improvements to the National Flood Insurance Program bumped up the limits on single family residences to $250,000 for the structure and $100,000 for the structure’s contents. Even commercial structures can be insured to a limit of $500,000 for the building and $500,000 for contents. Replacement cost coverage is available for structures on a limited basis for single-family dwellings that are primary residences.


8. I can’t qualify for coverage because I’m not in the flood plain. Right?

Wrong. Almost everyone in a participating community qualifies for coverage and almost every community participates in the program. Remember to set the policy limits to the full value of your structure and buy contents coverage too.


7. Isn’t it too tough to sign up and not worth my time since I’m in a low to moderate risk area?

Today it is even easier for people in zones coded B, C, and X to secure coverage. And more than 30% of all NFIP flood claims come from these low to moderate risk areas.


6. Can I finance my purchase?

Sure, Companies accept all major credit cards.


5. Do I have to wait until a completed elevation certificate is issued to me?

No. With provisional rating,companies can make coverage available even before an elevation certificate is complete (required on homes built after December 21, 1974 in map zones coded A or V). So you won’t need to delay closing on a loan or settlement of a property.


4. Is my basement covered?

NFIP policies have some coverage for basement elements: cleanup expense and items such as furnaces, water heaters, washers and dryers, air conditioners, freezers, utility connections, and pumps are included. Contents in a finished basement are excluded, as are a basement’s finished walls, floors, and ceilings.


3. Can’t I just hold out for federal disaster assistance.

Hardly. Federal disaster assistance is declared in less than half of all flooding incidents. Besides, the annual premium for a NFIP policy is less expensive than the interest on most federal disaster loans. The only real option is to get insured before the loss. Even if a federal grant or loan is awarded to you after a major flood, you’ll probably be required to use part of the proceeds to purchase a NFIP policy.


2. Can I buy NFIP coverage through The Ormond Agency?

You bet. We work with carriers that write through the Federal Emergency Management Agency (FEMA), the administrator of the NFIP so that we can make flood coverages available to our customers.


1. Doesn’t my homeowners policy cover floods?

NO. Most major insurance companies  do not offer flood protection as part of their homeowners coverage. Catastrophic risks created by floods are just too costly and would raise homeowners premiums too high. The NFIP is the only way for homeowners to address the risk of flood. 


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