When Is the Right Time for Flood Insurance?

Blogs

4 min read · Nov 28, 2022

It’s always a good idea to be prepared for the worst, including being financially ready for a natural disaster. Not only can floods be damaging to your home and property, but they can also be dangerous. One way to prepare for flooding is to have flood insurance. But when is the best time to buy it? Neptune offers guidelines to help you decide when to get your flood insurance.

It is never too late to get your flood insurance and the best time to get it is right now!  Every property has a risk at flooding, just some more than others.

You Reside in a High-Risk Area

It’s a no-brainer that if you live in an area with a history of flooding, you should have flood insurance. If your home is in a FEMA-designated Special Flood Hazard Area (SFHA), where the chances of flooding are the highest and you have a mortgage, the bank or mortgage company will require it.

But even if you don’t live in an SFHA, your home could still be at risk. According to the National Flood Insurance Program (NFIP), floods are the most common natural disaster in the United States and can occur anywhere. So, even if you live in a low to moderate-risk area, it’s still a good idea to have some protection. And it’s not a wise decision to rely solely on the NFIP flood maps – they’re outdated and can give you a false sense of hope that you’re protected.

The Need to Meet Mortgage Lender Requirements

If you have a mortgage on your home, your lender will most likely require you to have flood insurance if you are in a flood zone. Most federally regulated or insured lenders will not issue a loan without it. This is because standard homeowners’ insurance policies do not cover flooding, and lenders want to know the property is protected

Lenders understand the risks of flooding and do not want to be left with a property damaged by floods. For this reason, they will typically require flood insurance for properties located in high-risk areas. If you’re unsure whether your home is in an SFHA, you can check the FEMA Flood Map Service Center or ask your agent.

Desire to Enjoy Maximum Flood Insurance Coverage Protection

There are two types of flood insurance coverage: building property coverage and contents coverage. Building property coverage protects the physical structure of your home, including the foundation. Contents coverage, on the other hand, safeguards your belongings inside the home.

NFIP flood insurance policies will cover up to $250,000 for building the property and $100,000 for personal property. Private flood insurance, like Neptune, can provide up to $4,000,000 for the building and $500,000 for contents. If you live in a high-risk area, you may be required to purchase a policy with a higher limit. Protecting your personal and building property is essential, so full coverage is best.

The Cost of Flood Insurance Is Within Your Means

The cost of flood insurance depends on various factors such as the location, type, and age of your home, the level of protection you desire, and whether you live in a high-risk area. But on average, a typical flood insurance policy can cost anywhere from $500 to $700 per year but it can be more if you need higher coverage limits.

If you live in a high-risk flood zone the rate may be higher, but there are ways to help offset the cost. For example, you can purchase a policy with a higher deductible. You can talk to your agent about what is best for you.

You Lack the Resources to Handle Flooding Repercussions

If a flood damages your home, it can be expensive to repair. And if you don’t have the right insurance coverage, you may have to pay for the repairs out of your pocket. The average payout from the NFIP between 2019-2021 was $42,000. Having flood insurance is an affordable yearly policy that saves you from having a large expense at one time if your home were to be damaged.

If you live in a high-risk area and don’t have flood insurance, the repairs could cost you tens or even hundreds of thousands of dollars. So, if you can’t afford to pay for the damages out of your pocket, it’s wise to have flood insurance. It can help give you peace of mind knowing that you’re protected financially in the event of a flood.

Desire to Be Prepared for the Unexpected

No one knows when or where a flood will hit until it’s too late. Even if you don’t live in a high-risk area, you could still be at risk. Flooding can occur anywhere there’s rainfall, melting snow, or dam or levee failure. It’s always best to be prepared.

If you have flood insurance and a flood does occur, Neptune Flood can focus on processing your claim and getting your life back to normal instead of you having to worry about how you’re going to pay for the damages.

Why Get Your Flood Insurance from Neptune Flood?

If you’re looking for flood insurance, Neptune Flood is a great option for a variety of reasons:

  • Get Sufficient Coverage
  • Enjoy Competitive Rates
  • Benefit from Expertise
  • Receive Prompt Payouts
  • Benefit from Personalized Service

Contact Us

Having flood insurance is vital for a variety of reasons. It can help you protect your home, belongings, and finances in the event of a flood. And at Neptune Flood, we can help you find the right policy for your needs. Contact us today to learn more about our flood insurance options and get the coverage you can count on.