With the start of hurricane season less than two months away (June 1), it’s time to start thinking about how to protect your home if a storm makes landfall. You should already have hurricane coverage as part of your homeowner’s insurance policy, but what about flood insurance?
If you don’t have flood insurance or have it but don’t understand what you’ve got, keep reading. Here are a few things you need to know.
Flooding Isn’t Covered by a Standard Insurance Policy
If flooding occurs in your home because of rain, rising water, or even a flooded swimming pool, don’t expect your standard insurance policy to cover you. Even in a hurricane, the question of whether damage is covered comes down to whether wind or water was the culprit. Having a flood insurance policy, even if you’re in a low risk zone, protects you all the way around.
Sign Up By May 1 for Hurricane Season Coverage
You can’t sign up for flood insurance on Monday and be covered by Tuesday. Flood insurance has a 30-day waiting period for most policies. If you want to be covered in time for the start of hurricane season, talk to your insurance provider now and sign up by May 1.
Low Risk Policies are Less Expensive
Talk to your insurance agent to get quotes but if you live in moderate to low risk flood zone, your premiums won’t be very high. No, you’re probably not required by your lender to purchase a policy but this is Florida, and we’re surrounded by water. Even a nasty rainstorm can create flash flooding. It’s better to be safe than sorry.
Flood Insurance Rates Increased on April 1
Across the board, everyone’s rates increased this year. For those who have grandfathered subsidized plans, the increase was 18 percent for primary residences and 25 percent for non-primary. Those with policies in the low to moderate zones saw an increase of up to 15 percent.
Subsidized Plans Can’t Increase More than 25 Percent Each Year
Legislation passed in 2012 required that subsidized plans – typically for homes built before or in the 1980s – start paying the actual amount for their premiums. The increase was too much for many homeowners to pay so in 2014, the increase was limited to no more than 25 percent each year.
If you have questions about your flood insurance policy or you want to add it to your insurance, talk to your insurance agent. They can answer your questions on the specifics of how the policy will work and give you an idea of the cost for coverage.
As close as we live to the water here on the Emerald Coast, and as hazardous as a even a bad rain storm can be, it pays to protect your home and family as best as you can. Flood insurance may be one of the options you should consider.
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