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Some homes sit in high-risk areas for water damage. Other residences are located in a moderate- or low-risk location. Regardless of your home's location, you might consider purchasing flood insurance to protect yourself from the financial loss that can result from water damage. Limitations of Disaster Relief If you are not insured when a catastrophic event occurs, you will be left to either repair the damage on your own or hope the state or federal government issues an official declaration of disaster. Without this official declaration, no assistance will be provided. Even with an official declaration, not all disasters will result in assistance awards to residents. You may only receive an offer for financing to cover your expenses, rather than funds for rebuilding and repairs. Benefits When you purchase individual flood insurance coverage for your house, you have will receive greater protection in the event of a disaster in the form of a payout. - In the event of flooding, you will receive a payout commensurate to the water damage caused to your property. - Any funds you receive from your policy will not require repayment. - Your policy will be continuous without the threat of non-renewal or cancellation due to repeated claims, which can occur with disaster assistance. - Policy owners can also receive coverage for contents of a home or business, up to $100,000 for residential policies and up to $500,000 for business policies. Coverage Details Individual policies will have different coverage features, so be sure to carefully read the policy paperwork so you understand the terms. For example, the nature of the flooding will determine coverage. If water damage occurs due to a sewer backup in your home, most policies will protect you from this damage only if it occurred as a result of a flooding event rather than another type of issue. Learn what building property and personal contents are included in the policy. Find out what issues are not covered by the terms of your agreement. A policy will also have deductible options to select, which will affect premiums and claim payments. Eligible Properties A number of different types of properties are eligible for insurance coverage. You can purchase coverage for a single-family or multi-family home. You can also, as a business owner, cover commercial property that you own. Renters can purchase policies for apartments, condominiums, and commercial property to protect against loss from water damage. Government and Lender Requirements People who own property in floodplain areas may have no choice but to purchase flood insurance. Home and business owners who are in high-risk areas with federally regulated loans often find that coverage is required under the terms of their mortgage. Small business owners who receive certain loans from the Small Business Administration may also find that this requirement is attached to their financing terms. Some communities in high-risk areas have management ordinances in place that require residents to have insurance policies that protect them against loss from water damage. To be eligible for federal and state disaster relief, residents must first be insured. There are a few differences between insuring your property against floods and insuring it against other types of risks. First, flood insurance is not always carried by the same companies that offer homeowner's and property insurance, because it entails different risks. You may have to call around and ask your insurer if they provide this service, or if they know someone who does. Second, if you live in an area that is prone to floods, you may need a surveyor to verify whether your property is inside or outside of a high-risk zone before you can receive a quote. Contact your insurer today and ask them about adding the protection of flood insurance to your property. When looking for flood insurance, NJ property owners should consult https://www.mullerinsurance.com/flood.cfm.
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