Private Flood Insurance

To help protect your home from water damage and more,private Flood insurance is a great choice for defense against the elements. Since flooding happens in 90% of all U.S. natural disasters and creates billions of dollars worth in damages each year, it’s important to understand your home may not be in the clear even if your property benefits from being in a lower-risk zone.

More specifically, private flood insurance refers to coverage offered by non-governmental, for-profit businesses. These businesses usually offer a competitive alternative to the National Flood Insurance Program (NFIP). In fact, when compared to NFIP terms private insurers can often provide better flood insurance coverage with lower flood insurance premiums.

While both NFIP and private flood insurance coverage offer supportive terms for clients, private companies usually offer the best options. Most – if not all – NFIP terms won’t take effect for the first 30 days after purchase. Private flood insurers often deliver shorter waiting periods. If you want to get a policy in place quickly, private flood insurance is probably your best bet. After all, it’s not a good idea to wait for a disaster to strike before getting your flood insurance secured.

Let’s take a closer look at just a few of the benefits of choosing private flood insurance coverage for your home.

Availability & Affordability

While over 22,000 communities take part in the National Flood Insurance Program, plenty of others do not. For instance, NFIP insurance is available in high-risk areas for all 50 states and many territories. However, if you live outside these high-risk zones optional private flood insurance is often the better choice. The private flood insurance market includes many companies that are all competing to offer better prices and services. Because of this competition, private insurance lets you easily compare multiple policy options to find the one with both coverage terms and prices that match your lifestyle needs.

Coverage Beyond Most Homeowners Insurance

Flooding is one of the most common house hazards in the United States. In addition to flooding from extreme weather events like hurricanes and thunderstorms, floods and flash floods happen across all 50 states. However, damage from flooding is not usually covered by your typical homeowners insurance policy. This can be a little surprising, especially considering that a single inch of water can cause damages that take thousands of dollars to repair. With most private flood insurance, your home will be protected from risks like damages resulting from a flood or flood-related erosion, direct physical losses, and damages from heavy or prolonged rain, snow melt, coastal storm surge, drainage system failure, and more.

Flexible Coverage Options

Unlike NFIP coverage, private insurance companies are able to provide a wide range of coverage types and options. They can even provide and reinsure NFIP plans. Private companies can also take on the risks of damages on their own by offering tailored flood insurance policies instead of just one-size-fits-all coverage terms. For example, federal law requires that flood insurance policies have to provide coverage that is as broad as the coverage available through NFIP. However, Private insurers may also offer flood insurance plans outside of the NFIP through its Write Your Own Program. You can get a quote from your current homeowners insurance provider to find out how much coverage they offer.

It’s important to note that private flood insurance companies are constantly adapting to stay competitive with the best options. Whether you live in a high-risk area or not, your home benefits from proper flood insurance support. For more information about private flood insurance and the policies that are available to you, don’t hesitate to contact YMI today. Our friendly team members can help you decide the right policy for you.