Here’s what you need to know about the National Flood Insurance Program (NFIP).
As a homeowner, it’s important to understand that a standard homeowners insurance policy will not offer coverage for flood damages. The only way to secure this coverage is by getting a flood insurance policy. These policies are available from the National Flood Insurance Program (NFIP). But what is the NFIP and what can its insurance offerings do for you? Here’s what you need to know.
What is the NFIP?
The NFIP was created by Congress in 1968 with the intention of providing flood insurance managed by the Federal Emergency Management Agency (FEMA). Most residential flood insurance policies in the U.S. are sold through the NFIP.
What does NFIP cover?
When you secure flood insurance for your home through the NFIP, you get two types of coverage. The first is building property which includes coverage for the following:
- Carpeting installed over unfinished floors
- Electrical systems
- Foundation wall, anchorage systems, and staircases attached to the structure
- Fuel tanks, solar energy equipment, water tanks, and pumps
- Furnaces, water heaters, heat pumps, and sump pumps
- Refrigerators, stoves, and built-in appliances (such as dishwashers)
- Permanently installed paneling, wallboards, bookcases, and cabinetry
- And so on
The second form of coverage offered by the NFIP is coverage for your home’s contents. This includes coverage for the following:
- Carpeting installed over hardwood floors
- Clothes washers and dryers
- Food freezers and the food inside them
- Personal belongings (such as clothing, furniture, and electronic devices)
- Portable window air conditioners
- Valuables (such as artwork, antiques, jewelry) up to $2,500
What doesn’t NFIP cover?
While the coverage offered by the NFIP is widespread, it cannot cover everything. The following are some of the things excluded from NFIP coverage:
- Currency, precious metals, valuable papers
- Mold, mildew, or moisture damage not caused by the flood
- Damages caused by earth movement
- Financial losses stemming from business interruption
- Additional living expenses
- Property outside the building (such as landscaping, walkways, decks, patios, fences, swimming pools, etc.)
- Cars or other self-propelled vehicles (your comprehensive car coverage will offer protection against flood damages)
This is what homeowners need to know about the National Flood Insurance Program. Do you have additional questions about flood insurance or your other homeowners coverage options? If so, contact the experts at AllStar Direct Insurance & Financial Services in Miami, Florida. We are ready to assist you with all your homeowners insurance needs today.