Understanding Flood Insurance

Understanding Flood Insurance

Here is a basic outline about flood insurance:

• Flood insurance can only be purchased through a licensed agent and not directly from the federal government. Go to www.FloodSmart.gov for further help or contact the NFIP 888-379-9531
• NFIP is the National Flood Insurance Program
• Homes and businesses in high-risk flood zones with federally regulated or insured lenders are required to have flood insurance.
• It is important to ask about what your flood insurance covers. You may want more coverage for contents.
• If you live in a low-risk flood zone such as, a Zone X or D you may still want to get what is called a “PRP” flood insurance policy. A “PRP” policy is an inexpensive policy for low-risk flood zones.
• Flood insurance deductibles are applied separately for building and contents with varied amounts to choose from.
• Rates for flood insurance are set and do not differ from company to company or agent to agent.