Private flood insurance is an alternative to flood insurance offered by the Federal Flood Insurance Program (NFIP) for properties (both commercial and residential). In the US marketplace in 2019, private flood insurance represented over 30% of all private direct premiums in Special Flood Hazard Areas, including the city of Braselton, GA. To decide whether you need private flood insurance, it is vital to know its advantages and disadvantages.
Advantages of Private Flood Insurance
One of the best advantages of private flood insurance for homeowners is that it offers higher coverage. While NFIP offers coverage up to $250,000 for the structure and up to $100,000 for personal belongings, private insurance companies offer homeowners twice that or even more. Therefore, private flood insurance is especially beneficial for properties valued above $350,000.
Unlike the federal program, flood insurance offered by insurance companies can be tailored in order to fit the property. With private flood insurance, property owners have an option to add more coverage options, including coverage of damages landscaping, basement, outdoor furniture and decks, and other parts of the property that may be of value for clients.
Faster and Easier Process
Obtaining private flood insurance is much faster and easier than NFIP. Insurance agents are able to provide you with a quote and deliver coverage quickly and efficiently. The claim process with private insurance is also much faster and easier.
Disadvantages of Private Flood Insurance
However, like any other type of coverage, private flood insurance has its disadvantages that you should be aware of:
New and Untested
Private flood insurance is a relatively new and untested option that was extremely rare until 2014. For this reason, many mortgage companies might not accept private flood insurance.
If you are searching for a policy that will match your needs perfectly, Bingham Insurance Group in Braselton, GA is ready to assist you. We personally look at every quote to make sure our clients get the right level of coverage. Contact Bingham Insurance Group today for a professional insurance consultation.