Who should carry flood insurance?

With changes that have been happening with the weather all over the country areas that have never seen a flood are in danger of seeing one. With more and more once in hundred-year floods showing up more and more people have started to wonder who should carry flood insurance. At Bingham Insurance Group in Braselton, GA, our independent agency makes sure our customers can choose from among the most reliable carriers in the business. 

Who should carry flood insurance? Anyone with even a small risk of flood damage. 

At one point in 2019 more than two-thirds of the contiguous United States was in danger of flooding and the words "rains of biblical proportions" were used to describe the condition. Combined with heavy snow in Canada and you have a recipe for disaster. 14 million people were impacted by this flooding. It is eye-opening, to say the least. 

Flood insurance is offered through the NFIP (National Flood Insurance Program) and administered by FEMA. Their policies are sold through about 60 direct service insurance carriers. In order to purchase this insurance, the community where you reside must be one of the 23,000 participating NFIP communities. If you live in a non-participating community, you still can get flood insurance through 59 WYO (Write Your Own) companies. It is still the NFIP insurance it is just written and sold using the insurance company’s branding. 

Beyond the NFIP and WHO policies, other private carriers are selling flood insurance. This private insurance offers advantages such as offering higher limits on the physical building and the content level than those allowed with the NFIP policy. They also offer loss of use coverage to help you pay for a place to stay while your home is being repaired. One disadvantage is the insurer can cancel your policy if they feel the risk is too great, NFIP insurance can’t do that. 

Contact Bingham Insurance Group in Braselton, GA for all your insurance needs. 

Pros and Cons of Private Flood Insurance

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

Higher limits

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. 

Customizable Coverage

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.

What Qualifies a Property as At Risk to Get Flood Insurance?

Of all the natural disasters, flooding is number one for insurance claims. Flooding can happen in nearly every state and for this reason, it can be a good idea to be covered. It is important to know how high risk your property may be when looking at this type of insurance. Bingham Insurance Group of Braselton, GA can work closely with you to help find out whether you live in a low or high-risk area that is more prone to flood.

Flood Zones

The most obvious way to determine the level of risk of flooding to your property is the flood zone it is in. FEMA gives lettered designations that inform this level of risk and can be helpful when talking to insurance agents about how much flood insurance you may need. While what flood zone you live in shouldn’t be the only qualifying reason for getting flood insurance, it is useful to research and know to make decisions about purchasing coverage.

Changing Factors 

Even if you do not live in a high-risk flood zone, there are other factors that can still make flooding a possibility. Over-developed areas that are improperly planned, poor drainage systems and extreme weather conditions can all contribute to the likelihood of your property flooding. If you are uncertain of these factors, researching where you live can make you better informed at your flood risk.

Most homeowners insurance policies don’t cover flooding. It is usually an additional coverage that will need to be added. Since your home is likely one of your biggest investments, it can be a wise practice to get some kind of flooding insurance. Our qualified and friendly representatives at Bingham Insurance Group of Braselton, GA will be happy to discuss your insurance needs. Stop in or give us a call to schedule an appointment today.