Advantages of private flood insurance. While neither home insurance nor flood insurance is mandatory in Florida, homebuyers who purchase their homes through a mortgage are required, either by the mortgage lender or the lender, to have both homeowner’s and flood insurance. The latter is necessary if the property is located in a high-risk zone, as indicated on the map provided by the Federal Emergency Management Agency (FEMA).
When choosing flood insurance, some homeowners may wonder whether it’s better to opt for a private policy or one from the National Flood Insurance Program (NFIP) administered by FEMA. What’s the difference?
The truth is that private insurers offer more flexible and extensive coverage compared to FEMA’s standard range. For instance, private insurers often cover over a million dollars for the home’s main structure, while FEMA’s coverage goes up to $250,000. Regarding content coverage, private insurers usually offer up to $250,000, whereas FEMA provides coverage up to $100,000.
Another significant difference is that private insurers can provide additional coverage for temporary expenses if the homeowner needs to rent a residence. At the same time, flood-related damages to their home are being repaired. They also tend to cover structures that are not attached to the main dwelling, as well as the repair of pools and basements.
Yet another distinction is the shorter waiting period for private policies, typically five to ten days. In contrast, FEMA’s insurance requires a 30-day waiting period after the contract is signed before it becomes effective.
If you currently have NFIP/FEMA flood insurance, call Univista Insurance. You’ll find more affordable options through a private insurer. Advantages of private flood insurance.
Call us today for a comprehensive assessment! 305-267-7138. You can also get a free quote here.
