Insurance is a risk management procedure and a form of protection for any financial loss. For the majority of agents, penning a Homeowners policy is just a walk in the park or as easy as riding a bicycle. This is because they have done it over a hundred of times thus they have a good understanding of its coverage and stipulated policies.
On the other hand, writing a flood insurance policy is not the same as a homeowner’s insurance policy. It is a bit harder and not a walk-in-the-park kind of matter.
In fact, the National Flood Insurance Program (NFIP) demands a more detailed and well-constructed accede of information compared to a homeowner’s underwriting deed. A flood insurance requires a better understanding and knowledge of the NFIP’s coverage limitations, flood maps, elevation certificates, and other legalities bound by the said insurance program.
For places that are categorized as Special Flood Hazard Areas, agents usually offer flood insurance coverage along with the mortgage. For at least 90 million residential properties in the United States (US), an estimate of 10 percent of which are located at Special Flood Hazard Areas with only half of them have flood insurance coverage.
To know more about its difference, here are three reasons why flood insurance and home insurance are different.
It has a totally different policy covered
Truth be told, homeowner’s policy and flood insurance have totally different coverage. This is the common mistakes of any homeowners, thinking that once a home policy insurance is signed, it also covers flooding cases.
NFIP Flood Insurance does not incorporate basements and additional living expenditures in its coverage. However, the said policy includes beneficial coverage for the property’s foundations, footings, piers, pilings, posts, and another supporting system of a property. In addition, the policy also covers staircases, furnace, circuit breakers, electrical outlets, etc.
The Flood Program has budget deficit
The Federal Emergency Management Agency (FEMA) is very honest that flood cases are in need of further assistance. In fact, the Flood Program is currently facing $24 billion budget deficit. As a resolution, its recent legislation enabled private industries to venture into the Flood Insurance circle.
A new form of technology an improved innovation system from private corporations can help on creating new and revised flood insurance contracts that will provide greater coverage, a more understandable information, and a simpler application procedure that will be beneficial to everyone.
At Filer Insurance, Inc., we aim to make our client’s life easier with home insurance policies that are tailored to their needs. You can get more information about our products and services by calling our agency at (305) 270-2100. Get your free quote today by CLICKING HERE.