If your home or business is located in a flood plain, you probably have flood insurance backed by the National Flood Insurance Program. These policies offer important coverage during a flood, but you may not know that they have a coverage limit of $250,000 for homes and $500,000 for businesses. If your house or business is worth more than these limits, you may want to further protect your property with excess flood insurance. These policies can extend the amount of coverage to several million dollars or more, depending on the policy you purchase.
Supplemental flood insurance can also offer you benefits that NFIP policies cannot. If your home is flooded, excess flood insurance may cover temporary housing costs while your home is being repaired. It may also provide greater coverage for items located in your basement that are damaged by flooding. If your business is affected by flooding, an excess flood insurance policy may also offer you business interruption coverage.
When purchasing flood insurance through the NFIP, you can also purchase an additional $100,000 policy to cover the cost of the contents of your home. This policy will only cover the depreciated value of your belongings. There are also caps on the amount that will be paid for damage to artwork, jewelry and other valuables. On the other hand, supplemental flood insurance can insure your treasured possessions up to their replacement value and beyond the $100,000 limit. For businesses, NFIP coverage extends to $500,000. However, depending on your business, you may find that this coverage will not replace the expensive equipment, electronics and other assets of your company.
Keep in mind that you’re required to purchase NFIP flood insurance before buying a supplemental policy. If you have a mortgage, your lender may also have specific requirements about the type of coverage you must carry. Also, excess flood insurance may limit what type of personal property it will cover, so you should discuss the coverage you’ll need with an insurance agent. To cover possessions that are excluded by your flood insurance policy, an agent can often offer you a valuable-articles policy. To insure a quick payout in case of a claim, it may be advantageous to have all of your policies with one insurer.
In most cases, your flood insurance policy will have a 30-day window before it goes into effect. For this reason, talk with an insurance agent now, since hurricane season has already begun. If you’d like to find out how affordable excess Fort Lauderdale flood insurance can be for your home or business, call Pro Player Insurance Group at 855-367-7744 for a free quote and more information.