Water is necessary for life, of course, but when it gets into your home it’s suddenly less about giving life and more about causing destruction. Water doesn’t have much regard for property or non-waterproof things that are in its way when it decides to flood. But that’s exactly why Atlanta flood insurance exists – to help the homeowner recover from a flood-related loss. What exactly is flood insurance and what does it do? We’re going to explain 7 things you need to know about flood insurance.
7 things you need to know about flood insurance.
1. First things first – home insurance and renters’ insurance does not cover flooding.
Many homeowners only find this out too late – meaning after their home is underwater. Plenty of people assume that flooding is covered by Atlanta home insurance or renters insurance, but it’s not. Flooding is the most common – and most expensive – natural disaster in the United States, which is why it’s important to consider protecting your home with flood insurance. The damage from just one inch of floodwater can be over $20,000.
(Keep in mind that the insurance definition of flooding boils down to this: there’s a lot of water on the ground where there usually isn’t water and it infiltrates homes.)
2. You have to get flood insurance through the NFIP through an agent.
To get Atlanta flood insurance, you will most likely have to go through an agent and purchase a policy from the National Flood Insurance Program, or NFIP. You can discuss your insurance needs with the agent to make sure that you have enough coverage to protect both your house and your belongings.
3. The price is the price.
Okay, here’s what we mean by that:
Since you’re purchasing insurance from the NFIP, the price is not going to chance from agent to agent, or from agency to agency. You may have heard that it’s important to shop around and get multiple quotes for insurance, and usually that’s great advice. But when you’re getting flood insurance, you’ll get a quote and that’s what the price tag is. (So, in a way it’s a little less work!)
4. There’s usually a 30-day waiting period with few exceptions.
This one is extremely important:
Your policy won’t go into effect until 30 days after you purchase it. Lots of people have a bit of panic when there’s a big storm in the forecast and a lot of rain is predicted (like during hurricane season.) But if a huge storm is going to strike in a week, your brand new flood insurance policy isn’t going to help you much. You’ve got to wait out the 30 days.
There are a few exceptions – and we mean a few. One possible exception is if you need flood insurance to get a mortgage loan, extend a mortgage loan, increase a mortgage loan, or renew a mortgage loan.
Bottom line is this: be sure to talk to your agent about when your policy is going to take effect.
5. You have to pay all in one go.
Unlike other lines of insurance coverage, such as auto insurance, you have to pay for a year of flood insurance upfront in one installment. That’s just the way it works.
6. You can get flood insurance even if you’re not in a “high-risk” flooding area.
Even if you’re not in an area that’s considered “high-risk” for flooding, you can still purchase flood insurance. It’s not exclusively for those folks who live in flood-prone areas.
And check out this stat: FEMA (Federal Emergency Management Agency) states that more than 20% of all flood-related claims come from homes that are in areas considered to be low or medium-risk for flooding.
You can get flood insurance from the NFIP as long as your community participates in the NFIP. More than 22,000 communities nationwide participate, so chances are pretty good that you won’t have any problems finding a flood insurance policy.
7. If you’re not in a high-risk flood area, you might be able to get a preferred risk policy.
If your home isn’t in a high-risk area, you might qualify for a fancy flood insurance policy called a preferred risk policy. Basically, it acknowledges that you’re not a high risk for flooding, so the policy might be less expensive. If you’re in a low or medium-risk flood area but you want to get flood insurance for those just-in-case scenarios, ask your agent about a preferred risk policy.
So, there you have it – seven things you need to know about Atlanta flood insurance. If you’re interested in getting a flood insurance policy to protect your home, we would be happy to help. Our team of insurance agents can assist with getting quotes and helping you get the coverage that you need. To get in touch with us, you just have to fill out our online quote form or give us a call.