Floods occur with great regularity of the United States. Recently, we’ve witnessed whole cities underwater in the springtime floods around the Mississippi River. Nevertheless, floods can take place in sudden areas and for unforeseen reasons. Congress made the National Flood Insurance Program (NFIP) to offer insurance defense for the hazard of flood.

The regular household policy (HO 3) defines flood as follows:

“…A temporary and general state of complete or partial inundation of usually dry land parts due to: one. The overflow of inland or perhaps tidal waters; two. The rapid or unusual runoff or accumulation of surface waters from any source; or perhaps three. Mudslides.

Remember Hurricane Katrina? The hurricane winds blew flood waters into places which have never had hordes before. The insurance business denied thousands of claims, attributing the damages to flood. A huge number of home owners that had been not close to a flood plain had their statements denied since they didn’t have flood insurance.

Thus, below are 2 typical misconceptions about Flood Insurance.

Myth #1: Homeowners, renters, and even flood insurance policies cover flood damage.

Not any, renters, homeowners, and even business property insurance policies don’t cover hordes. The NFIP policy is a distinct policy which does cover flood damage to a house and also office. Contents coverage could additionally be put into the flood policy. Policies are out there to property owners in addition to property renters, whether office or home.

Myth #2: Only homeowners as well as business people are able to purchase flood policies.

Fact is that the majority of homeowners, condo owners, renters, and companies in NFIP participating communities are able to buy flood policies. Policy limits are:

o Condo and Home Owners – $250,000 for structural coverage, $100,000 in contents coverage o Renters – $100,000 in contents coverage o Business people as well as renters – $500,000 for structural coverage, $500,000 in contents coverage Myth #3: You cannot purchase flood insurance in case you’re in a high risk zone.

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