1639 Cape Coral Pkwy E, Suite 203 Cape Coral, FL

 

Phone: (239)549-5420
Fax: (239)549-7905
Email: dave@integratedinsfl.com

 
 
 
 
 
 

 



 

Flood Insurance

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What is a flood

Anywhere it rains, it can flood. A flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow. Many conditions can result in a flood: hurricanes, overtopped levees, outdated or clogged drainage systems and rapid accumulation of rainfall.

Since standard homeowners insurance doesn’t cover flooding, it’s important to have protection from the floods associated with hurricanes, tropical storms, heavy rains and other conditions that impact the U.S.

In 1968, Congress created the National Flood Insurance Program (NFIP) to help provide a means for property owners to financially protect themselves. The NFIP offers flood insurance to homeowners, renters, and business owners if their community participates in the NFIP. Participating communities agree to adopt and enforce ordinances that meet or exceed FEMA requirements to reduce the risk of flooding. Find out more about the NFIP and how it can help you protect yourself.

Flood insurance protects two types of insurable property: building and contents. The first covers your building, the latter covers your personal possessions; neither covers the land they occupy.

Just because you haven't experienced a flood in the past, doesn't mean you won't in the future. Flood risk isn't just based on history, it's also based on a number of factors: rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development.

Flood-hazard maps have been created to show different degrees of risk for your community, which help determine the cost of flood insurance. The lower the degree of risk, the lower the flood insurance premium.

High-Risk Areas

In high-risk areas, there is at least a 1 in 4 chance of flooding during a 30-year mortgage. All home and business owners in these areas with mortgages from federally regulated or insured lenders are required to buy flood insurance. They are shown on the flood maps as zones labeled with the letters A or V.

Moderate-to-low-risk areas

In moderate-to-low risk areas, the risk of being flooded is reduced but not completely removed. These areas submit over 20% of NFIP claims and receive one-third of disaster assistance for flooding. Flood insurance is not federally required in moderate-to-low areas, but it is recommended for all property owners and renters. They are shown on flood maps as zones labeled with the letters B, C or X (or a shaded X).

Undetermined-risk areas

No flood-hazard analysis has been conducted in these areas, but a flood risk still exists. Flood insurance rates reflect the uncertainty of the flood risk. These areas are labeled with the letter D on the flood maps.

 

Building coverage includes:

The insured building and its foundation

The electrical and plumbing system

Central air conditioning equipment, furnaces, and water heaters

Refrigerators, cooking stoves, and built-in appliances such as dishwashers

Permanently installed carpeting over unfinished flooring

Contents coverage includes:

Clothing, furniture, and electronic equipment

Curtains

Portable and window air conditioners

Portable microwaves and dishwashers

Carpeting that is not already included in property coverage

Clothing washers and dryers

 

The two most common reimbursement methods for flood claims are : Replacement Cost Value RCV) and Actual Cash Value (ACV).

The RCV is the cost to replace damaged property. It is reimbursable to owners of single-family, primary residences insured to within 80% of the buildings replacement cost.

All other buildings and personal property (i.e. contents) are valued at ACV. The ACV is the RCV at the time of loss minus physical depreciation. Personal property is always valued using the ACV.

Call Integrated Insurance Services today to identify the best combination of coverage, value and price just for you.

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