Why Consider Florida Flood Insurance Melbourne FL?
The losses which are caused by flooding are usually not covered in homeowners insurance policies. Therefore, it is important for you to invest in some flood insurance Melbourne FL policy so as to protect your home and financial future too.
According to studies, floods are the most common natural disaster in the United States. You do not even have to live near a river, lake or coastline so as to suffer a flood. 25% of all flood losses are attributed to areas in Florida that have low to moderate risk of flooding.
Surprisingly, eight of the most high impact floods in the history of the USA have occurred in the last 2 years. Moreover, only 2 inches of water in your house can cost you $7,800.00 in damages. Therefore, it is very important to protect your home and valuable property with some flood insurance.
Flood insurance is actually very affordable in some flood zones. In these areas, it costs only $1.40 every day. This leads to an average cost of $503 per year. It is also 100% guaranteed by the U.S. government. It is important to know that flood insurance requires a 30 day period of waiting on many new policies.
Therefore, you should not delay your application. The flooding insurance policies are normally issued by the First Community Insurance Company. This one is under authority from the Federal Emergency Management Agency (FEMA) to sell flood insurance. You can call our company Shoff Insurance Advisors, at 321-242-7777 or 877-210-6339 to discuss a flood insurance policy.
Questions About Flood Insurance Melbourne FL
Q: Does my homeowners’ insurance policy provide cover for flooding?
No it does not. Damage due to floods is not covered by a homeowners insurance policy.
Q: What is normally covered by flood insurance?
The flood policy which you invest in is designed to cover all damage that is directly caused by floods which affect your personal property or house. You can go online and download a brochure of coverage which has been created by the Federal Emergency Management Agency (FEMA).
Q: If I live in a low-risk flood area, do I need to invest in some flood insurance?
Yes, you do. Even if you live in an area that has low to moderate risk of flooding, you need to invest in some flood insurance. 25% of all insurance claims associated with flooding originate from areas that have low to moderate risk of flooding.
Q: Why should I invest in flood insurance even if the community which I live in has never flooded?
Flooding occurs in both high-risk areas and moderate-to-low-risk areas. Features such as poor drainage, snowmelt, rapid rainfall or broken water mains can result in floods. Moreover, houses that are located on hillsides can get damaged by mudflows. This is a peril which is comprehensively covered in the Standard Flood Insurance Policy.
The structures which are located in flood areas that are of high risk have a 26% chance of getting damaged by floods during the lifetime of a 30-year mortgage. In addition to that, a home which is located in such areas has a 2-1/2 time higher risk of damage from a flood than fire during the lifetime of a regular mortgage.
Due to these startling statistics, flood insurance is demanded by law for buildings which are located in high-risk areas. This is a condition which is stipulated before receiving a mortgage from an insured lender or one who is federally regulated.
Q: Why does the mortgage lender I am working with require that I buy some flood insurance?
Federal law actually indicates that one should purchase some flood insurance whenever you are seeking some federal or federally related finances for the construction or acquisition of buildings that are located in high-risk flood areas. These ones are known as Special Flood Hazard Areas or SFHAs.
The amount in flood insurance coverage which is demanded by the Flood Disaster Protection Act of 1973 according to the amendment performed by the National Flood Insurance Reform Act of 1994, should be less than the following:
• The maximum amount of NFIP coverage which is available for the property which you are trying to insure
• The principal loan balance
• The value of the structure which can be insured
If the property which you want to insure is not located in a high risk area, you do not need to invest in flood insurance as indicated by federal law. However, a mortgage lender can still demand that you do. This is supported by the fact that 25% of all flood damage claims come from areas which have moderate-to-low risk of flooding.
Q: Does flood insurance cover damage which is caused by hurricanes, tidal waters or rivers?
Yes it does as long as the flood water covers an area of more than 2 acres and is within your property. Moreover, if two properties which are adjacent are covered in water of which yours is one of them, you can benefit from flood insurance cover.
Q: If the home I live in is flooded, will the damages be paid for by federal disaster assistance?
No, they will not be paid for. Disaster assistance from the federal government is usually provided as a loan with a low interest to assist you in covering damage from your floods and not as compensation for the losses you could be incurring. In addition to that, the loans are provided only after the president declares formally that the floods are a disaster. This loan should also be repaid alongside any mortgage which you currently have.
Q: When does the flood insurance normally go into effect?
There is a waiting period which lasts for 30 days before an insurance policy for flood insurance Melbourne FL, is put in effect.
Note: The Federal Emergency Management Agency (FEMA) provided the information indicated above. You can visit its website by navigating to www.fema.gov. Some fact about floods have also be indicated above. They can be found here www.floodsmart.gov.