What is Covered by FEMA Flood Insurance?
There is always a risk of flooding in your house. You are never completely safe from the wrath of nature. Even minor flooding can cause great damage to your house. In some cases, even a single inch of water can cost up to $25,000 in damages. In such cases, FEMA Flood Insurance can become invaluable. It can provide the difference between complete recovery and financial devastation.
You should consider purchasing a FEMA Flood Insurance, even if you do not live in a high-risk flood area. Even cheap flood insurance can prove extremely beneficial when the time comes. The weather and elements are losing their predictability every day. Global warming is a dangerous phenomenon which is slowly throwing all calculations off. Even a desert can have torrential downpours and a hail of elements. If nothing else, the insurance policy will bring you peace of mind.
The property owners that live in high-risk flood areas can face a legal directive to acquire a flood insurance.
Mortgage in High-Risk Flood Areas
There are certain regulations for home and business owners in high-risk flood areas. If they wish to acquire a Government-backed mortgage, they must buy a flood insurance policy as a pre-requisite. Other than that, you are not legally required to acquire said insurance if you live outside the high-risk area. However, even if the government does not make it mandatory, your lender might still require you to acquire one. FEMA Flood Insurance is a necessity, no matter where you live.
Receiving Disaster Assistance
The Federal Emergency Management Agency (FEMA) gives aid in the form of disaster assistance, and/or grants to the victims. You can even receive low-interest disaster loans from the Small Business Administration (SBA) for economic recovery. However, you must maintain FEMA Flood Insurance for consideration of future assistance, in case of another disaster.
Necessity of FEMA Flood Insurance
You need to purchase Flood Insurance Policy, even if you do not have a legal mandate for purchasing it. It gives you countless benefits. Following are a few facts that might convince you;
- Generally, the Homeowner’s Policy, or the Renter’s Insurance does not cover flood damage. Flood coverage happens when there is a specific clause in the policy. Even then, it is limited as compared to a dedicated standalone policy.
- Government agencies offer aid in flood hit areas when there is a Presidential Disaster Declaration. However, a FEMA Flood Insurance pays the claims regardless of a presidential order.
- Federal disaster assistance comes in the forms of a low interest loan, or a disaster grant. The grant averages at about $5,000 per household. On the other hand, a Private Flood Insurance pays a claim for more than $40,000.
Coverage Parameters in FEMA Flood Insurance
The National Flood Insurance Program (NFIP) provides coverage for direct physical losses to your structure and belongings. Federal Flood Insurance provides coverage for the protection of the things you value. Generally, there are two forms of coverage – Building Coverage, and Contents Coverage.
The Building Coverage in a Flood Insurance provides coverage to;
- Anchorage Systems
- Built-in Appliances; like cooking stove, dishwasher, refrigerator etc.
- Detached Garages
- Electrical Systems
- Fuel Tanks
- Foundation Walls
- Permanent Carpeting
- Permanently built furniture; like cabinets, paneling, bookcases etc.
- Plumbing Systems
- Solar Energy Equipment
- Window Blinds
- Water Heaters
- Water Tanks
The Contents Coverage in a Flood Insurance provides coverage to;
- Personal Belongings; like clothing, furniture, personal artifacts etc.
- Washer, Dryer etc.
- Portable, or Window Air Conditioning Unit(s)
- Carpeting excluded from Building Coverage
- Valuable Articles; like original artwork, furs etc. (up to $2,500)
Exclusions From FEMA Flood Insurance Coverage
The cause of flooding is very important while determining the coverage. FEMA Flood Insurance only provides coverage for the losses caused by flooding. A Flood is defined as;
An excess of water on land that is normally dry, affecting two or more acres of land, or two or more properties.
Such as, damage caused by sewer backup has valid cause for coverage, if it occurs directly because of flooding. Otherwise, the policy will not pay for the damages. Following is a list of items which have no coverage under FEMA Flood Insurance;
- The cost of temporary housing and living expenses while the flooded building is under repairs, or unlivable.
- Any property which lies outside the insured building, and is into specifically included in the contract. Such as;
- septic system
- hot tubs
- swimming pools, and more!
- Any financial loss which is caused by interruption of business.
- Paper currency, precious metals, stock certificates, property deeds, other valuable documents etc.
- Automobiles and other self-propelled vehicles, including their parts.
- Personal artifacts, memorabilia, storage, which is kept in basements.
Safeguard Your Home With the Best FEMA Flood Insurance in Texas
SG Financial Inc. can provide you with the Best FEMA Flood Insurance in Plano, Texas. We can help you safeguard your homes and your family from unexpected financial losses. Flooding can happen anytime, anywhere. We assure you, our flood insurance cost in very much affordable.