Insurance

Flood Insurance : Companies that provide Flood Insurance Policies

Flood occurrence has become almost a yearly cause of disaster for Americans, thus enhancing the need for flood insurance.
Flood insurance is an insurance policy that covers against loss of properties in the event of flooding. Insurers use topographical maps which indicates lowlands, floodplains, and floodways to determine risk factors.
The record shows that only about 20% of homes in the risk zones are covered. Although, most private insurers don’t offer policies for claimants of flood devastation. This is because it is not as profitable as most other claims.

In flood coverage, they are a lesser number of claimants than the available number of people interested in insuring their properties from the flooding threat. This negligence on the part of homeowners plays a major part in the huge rate of devastation that follows flooding.
The Federal Government in some flooding prone areas requires mortgage loan seekers to have flood insurance. It must be backed by some federal agencies like Federal Housing Administration (FHA) and Veteran Affairs (VA) before they could get a mortgage loan.

flood insurance

Most homeowners only discover after the damage occurs that their insurance plan does not include the coverage. This is most times prove detrimental. And because flooding incidences occur in few areas, only a few insurers in the US provide coverage for flood.

National Flood Insurance Program

The American government established the National Flood Insurance Program (NFIP) to help provide relief to victims of flooding mishap. According to Federal emergency management agency (FEMA), most homeowners in the low-risk zones think they are ineligible to buy the policy but contrary to that belief, anyone residing in NFIP member community can and should be covered.
Eligible individuals with mortgages on their homes are required by law to buy separate flood insurance via private flood insurance company or through NFIP distributors with the US. The NFIP member communities are about 19,000 in number throughout America. Also, the policy is available for all NFIP member communities via private carriers.

Companies that provide Flood Insurance Policies

They are only a handful of insurance companies that offer flood insurance coverage to its customers; the following is a list of the few companies;

  • PURE
  • Chubb
  • AIG/Chartis
  • And Lloyd’s which is underwritten by the natural catastrophe insurance program.

Conclusion

In conclusion, it is very important every homeowner in the prone areas, and its environs get the coverage. This will help mitigate the devastation that might come from flooding.
Every relevant answers about the NFIP are provided on the FEMA website.
Please visit the page to get details on how to go about securing a flood insurance policy for you and your loved ones.

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