How To Buy a Flood Insurance – Do you want to know how to buy a flood insurance, well here’s how it goes. Flood insurance can be bought by homeowners and renters from the federal government or private companies.
To insure your home against flood damage, ensure you purchase a separate policy since your homeowners or renters insurance may not be enough. Note that, if you stay in an area where flood risk is high your lender may need you to purchase a flood policy that is specifically backed by the National Flood Insurance Program (NFIP).
What you should know before you buy a flood insurance
- Once you purchase flood insurance, you have a typical 30-day waiting period from the date of purchase until the policy goes into effect. You can have your agent help you determine what the effective date is and whether you qualify for one of the waiting-period exemptions.
- You will be responsible for deductible. This is the amount you pay out of pocket before the insurance helps you pay for a covered loss. FEMA, states that this amount varies from policy to policy.
Who Can buy flood insurance?
Flood insurance can be acquired by homeowners, renters and business owners. For those who live in high-risk flood area and have a mortgage with a federally regulated or insured lender, FEMA states that you must have flood insurance.
Be it as it may, those who live in a moderate or low-risk area may be required by their lender to have flood insurance also and even if your lender does not require one, you should consider buying it.
How to buy a flood insurance
Those looking to buy flood insurance according to FloodSmart can get NFIP policies via many insurance agents across the country. This same agent will help you with the homeowners, auto or renters policy, and may come in handy when you need to get flood insurance if your community participates in the NFIP.
How to pay for a flood insurance policy
FloodSmart.gov states that you are to submit payment via your agent if you are paying for the first time. It also states that you have to make the payment, before the agent submits the application to FEMA.
Homeowners, can also pay for flood insurance coverage via an escrow account, which is a separate account with your mortgage lender, which is used to pay bills linked to your property.
Most lenders will also expect you to have homeowners insurance, which does not typically cover flood damage, and may also require that you have flood insurance.
How to renew a flood insurance policy
To renew your policy, get notification from an agent or insurer who you bought the policy from according to FloodSmart.gov. Your renewal offer encompasses information which you can use to make your payment, which may be via your agent, the mail or a servicing agent. In the event where your coverage lapses, there is a 30-day wait for reinstatement.
Also, if you have an escrow account, your flood insurance premium can be paid by the lender via that account. But before that is done, confirm with your mortgage company.