As Hurricanes approach the east coast of Florida, we’ll have so many phone calls the week leading up to the storm on the same topic. The question is generally some version of the following:
Can I get flood insurance?
And the answer is typically………. no. You see flood insurance falls into one of two categories. You have federally backed flood insurance through FEMA’s National Flood Insurance Program, and you have private flood insurance which is flood insurance without federal backing but generally complies with the federal coverage guidelines.
As Hurricanes approach Florida, the private flood insurance market typically closes to new business. In the insurance world we call this binding restriction. Simply put, the insurance companies won’t let insurance agents issue new policies until the storm has passed. Insurance companies do this to mitigate their losses and to limit their exposure when there is a catastrophic event on the horizon.
Federally backed flood insurance operates a little differently. The National Flood Insurance Program requires a standard 30-day waiting period on new business unless the flood insurance is required for a home closing where a mortgage is involved. Most of the customers that call in prior to a hurricane are current homeowners looking for flood coverage on their current residence. This means the 30-day wait would apply at which point the Hurricane would no longer be a threat.
So what should you do?
Buy flood insurance now in preparation for the storms to come. Even if you’re not in a flood zone, you can purchase flood insurance. And the best part is the federally backed flood insurance rates are set by the government, so you don’t need to shop around to find the best price as they’ll be the same from company A to company B to company C.
Want to see what insurance rates look like in your area? Get a quote online at shopitnow.chrinco.com or give me a call at 321-586-3754. Chrinco.com – insurance simplified.
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