In 1968, the US Congress created the National Flood Insurance Program (NFIP) to shield property owners from the risks of flood damage. The NFIP offers flood insurance to home and property owners, renters and business owners as well as nonprofits.

A standard flood insurance policy can pay for direct physical damage incurred to your property up to the replacement cost or Actual Cost Value of actual damages or policy limits – whatever is less.

Insurance professionals strongly advise homeowners to procure the two forms of flood insurance available separately for purchase:   

• Building Property Flood Insurance, covering up to $250,000 in damages
  
  
• Personal Property Flood Insurance, covering the contents of your home up to $100,000 in damages

                 

                                 More about Flood Insurance

Flood insurance is unlike some other types of coverage: 

• Flood insurance in a non-valued policy. Thus it does not reimburse the costs of limits of liability if there should be a total loss, as in the case of a home fire that renders complete destruction. In such a scenario, your flood coverage would only give you the replacement cost of the actual damages – up to the policy limit – as opposed to focusing on the costs of rebuilding.
  
  
• Flood insurance is a non-guaranteed replacement-cost policy. Thus, it does not cover the costs of rebuilding your home irrespective of the limit of liability. As mentioned, flood insurance pays for replacement costs – and only up to the limits of your policy.
  
  
• The NFIP places special consideration for property owners with ‘severe repetitive loss’ – those filing numerous flood damage claims. These insured property owners may be considered for a FEMA mitigation grant that pays for property improvement known to lower the risk of future flood damage. Property owners that are offered the grant and decline the opportunity may see a premium rate increase.
  
  

For more information about flood insurance, speak to the professionals at Prime Insurance.

PRIME Insurance is a three-generation family-run independent agency. We’re proud to partner with many of the leading underwriters – recognized companies like ACE, AmTRUST, ASI, ASSURANT, CHUBB, CNA, Employers, FOREMOST, Liberty Mutual, MetLife, PROGRESSIVE, Safeco, StillWater, Travelers, USLI, ZURICH and more. This gives us the ability to provide all forms of nationwide coverage and bonds at competitively lowest quotes. Visit us on our online insurance website or email us at PRIME [at] primeins [dot] com or call us at 732-886-5751 and HAVE A PRIME DAY™!

Summary: Prime presents general info about flood insurance offered by the National Flood Insurance Program in this overview.