What Is Selective Flood Insurance?

Did you know that over the last 30 years, US flood damage costs averaged $8.2 Billion per year?

Freak weather events and the associated cleanup and repair costs of floods have been becoming more and more frequent in recent years. As a homeowner in a flood-prone area, you owe it to yourself and your family to protect your interests now. 

This guide explains how selective flood insurance can help you hedge against the elements. We’ll explain what it is and how you can secure it today.

Read on to learn more. 

What is Selective Flood Insurance?

Selective flood insurance is a specialized policy that covers flood-related damages. It exists to protect homeowners from the financial burdens and losses caused by flooding.

This type of insurance is typically separate from standard homeowners’ insurance policies, which often exclude or provide limited coverage for flood damages.

There are many types of flood insurance policies available, and the flood insurance cost can vary based on your circumstances. It’s important to choose a policy that offers total coverage and peace of mind with reasonable flood insurance premiums.

Follow this link to learn more about the cost of flood insurance.

Coverage Options

Now that we understand what selective flood insurance is, let’s take a look at the different types of flood insurance available today. We’ll start with building coverage. 

Building Coverage

This coverage option protects the physical structure of your property, including the foundation, walls, roof, and electrical systems. It covers the cost of repair or replacement in the event of flood damage.

Always read over the terms to ensure you can afford the flood insurance premiums and excess. 

Contents Coverage

Contents coverage protects any belongings and assets within your property. This includes appliances, electronics, furniture, clothing, and other valuable items. Contents coverage helps with the cost of replacing or repairing damaged items.

While you may lose some items of sentimental value, contents coverage means you can replace your basic necessities fast, without needing to worry about added financial pressures.

Business Coverage 

If you own a business, you know how disruptive downtime can be. Business flood insurance covers you against lost earnings in the event of a flood.

This means you can keep your clients happy while your premises are cleaned and repaired.

Benefits of Selective Flood Insurance

The benefits of selective flood insurance are manyfold. Depending on your situation, it can help you in a number of ways. Let’s run through some of the main advantages:

Protecting Your Home

The main selling point of selective flood insurance lies in the peace of mind it affords. Flood damage can have a catastrophic effect on homes and businesses. For the uninsured, the cost of repairing structural and cosmetic damage and replacing valuables can quickly become unmanageable.

If you own property in a flood-prone area, you need coverage. According to recent studies, extreme weather events are becoming more severe – with more and more people suffering the financial burden of flood damage.

This underlines the importance of a comprehensive flood damage insurance policy. You can’t predict the weather, but you can protect your home with the right types of flood insurance.  

Meeting Lender Requirements

Some mortgage lenders may require selective flood insurance as part of the agreement. If you’re looking to mortgage a home in a high flood-risk area, be prepared to invest in the relevant insurance beforehand.

When you sign a mortgage agreement, the lender is investing in you and your property. Therefore, they need assurances that their money is protected should a flood occur. 

Hopefully, you never have to deal with flooding at your home or business. However, if you do, insurance protects both you and the lender from severe financial losses. 

Supporting Yourself

It’s worth mentioning that in the event of a flood, the government will provide assistance to those affected. These services include:

• Emergency rescue and response
• FEMA payments and support
• Temporary housing
• Mitigation grants and loans
• Community development grants

Although these aid programs provide key support following a flood, it’s still hard for many victims to get back on their feet. You can bank against this by investing in selective flood insurance.

If disaster strikes, you’ll receive your flood insurance payments and still be eligible for government support. This gives you the best chance possible to rebuild your life and business. 

What to Do in the Event of a Flood

If your property is damaged by a flood, you should immediately contact your insurance provider to initiate the claims process.

Take photographs of the damage and make a detailed inventory of the affected items. Your insurance agent will guide you through the necessary steps for filing a claim.

Take immediate steps to mitigate further damage to your property. Remove water, dry out affected areas, and board up broken windows. Taking reasonable measures to prevent additional loss or deterioration demonstrates responsible behavior to your insurance company.

Once you have assessed the damage and gathered all the necessary documentation, it’s time to file your selective insurance claim. 

Out of the Rain: Flood Insurance Explained

Selective flood insurance provides a much-needed safeguard for homeowners and businesses in flood-prone areas. With the increasing frequency of extreme weather events, the financial burden of flood damage can be overwhelming.

By investing in the right type of flood insurance, you can protect your property, belongings, and livelihood, ensuring peace of mind for you and your family.

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