There are multiple types of flood insurance and knowing the difference between public vs. private flood insurance is important.
Flooding is a stressful experience for any homeowner, and our recent heavy rainfall can exaggerate that stress. Many homeowners are finding out the hard way that most homeowners insurance policies do not cover flooding from rain water, except under very specific circumstances.
Therefore, this is probably a good time to discuss flood insurance and what your options are.
Even if you qualify for coverage under the National Flood Insurance Program, you may benefit from purchasing a private flood insurance policy, such as those offered through Lloyds of London.
Private vs. Public Flood Insurance Considerations
While the National Flood Insurance Program was created to reduce the financial burden of flooding on individuals and organizations, it has its limitations. The program experienced serious financial difficulty after the hurricane season of 2005, which had an impact on pricing. Private insurance companies are also able to offer competitive flood insurance pricing as a supplement to your existing home insurance plan.
While the NFIP requires a 30-day waiting period, many private insurance plans waive this requirement. Another benefit of choosing a private insurance plan is that private companies are able to offer coverage over $250,000 without requiring the purchase of an Excessive Flood Insurance policy.
Santa Barbara homeowners should be aware that standard home insurance policies do not necessarily cover all of the damage associated with flooding. Whether your area is experiencing record rainfalls or is generally prone to flooding, a private insurance policy can grant you the peace of mind that comes with knowing your assets are protected in the event of a flood.
Areas with heavy rainfall throughout the year may require additional coverage or experience higher flood insurance rates, so it is important to explore the public and private market options available to you in order to ensure that you are receiving the most competitive rates.
The best time to purchase flood insurance coverage is well in advance, since rates can vary according to the time of year. Your coverage options may also be limited by wait periods that require a certain amount of time to have elapsed between signing up for coverage and submitting a claim.
If you live in a flood zone or simply do not believe that the NFIP coverage you are eligible for would be sufficient if your home was affected, contact Brashears Insurance today at (805) 564-7645.
One of our licensed agents will be happy to discuss your options for synchronizing your insurance coverage to ensure that your most valuable assets are protected. When disaster strikes, it pays to have a knowledgeable and friendly insurance agent available to answer your questions and address your concerns.