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If you have recently bought home insurance, you should be aware that it does not cover the damages caused by flooding. Living in an area where the risk of flooding is low does not mean that you can ignore flood insurance. Federal Emergency Management Agency (FEMA) says that 90 percent of the natural disasters in the U.S. involve flooding. The statistics also said that 20 percent of all flood claims are filed by those who are living in areas where the risk of flood range from low to moderate. If you have not bought flood insurance yet, here are some of the things that you should know about flood insurance: Renters and Homeowners Policies Do Not Cover Flood Damages
Renters and homeowners policies do not cover damages that are caused by the flood; only flood insurance policy can cover losses due to flooding. Most flood insurance is issued through the federal government. Renters, homeowners and business owners can buy flood policies from agents under contract with FEMA. Flood Insurance Coverages Flood policy covers flood’s direct physical losses and other losses from erosion caused by flood or waves of water that exceeds the expected cyclical levels with a severe storm, unprecedented tide surge, flash flood or any situation that is caused by flooding. There are separate flood insurance coverages for the contents of the home and the structure. The coverage for personal property is through an actual cash value basis which has a maximum of $100,000, and the coverage of buildings are for replacement cost with a maximum of $250,000. On the other hand, flood-related car losses are covered through the standard automobile insurance policy’s optional and comprehensive portion. You can buy commercial flood insurance through the National Flood Insurance Program (NFIP), where you can get up to $500,000 of coverage for your establishment and up to $500,000 for its contents. Although, you can purchase “excess” insurance coverage reconstruct properties that are valued more than those limits. When to Buy Flood Insurance You should be aware that, while it is easy to purchase federal flood insurance, it has a 30-day waiting period before it takes effect. Therefore, you should buy it as early as possible as there is no way you can use it if a flood hits you within the waiting period. You cannot tell how much damage a flood can do to your properties. It is wise to buy a flood insurance policy, especially if you are living in an area where flood risk is high. At Sherzer Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (239) 673-9301 or Click Here to request a free quote.
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