Brief informaton on Flood Insurance Program

Flooding can occur at just about any point in time. In addition to time, a flood can occur at just about any place in the United States. There are a large number of individuals who are educated on flooding and the damage that it can cause, but an even larger number are not. This has lead to some confusion when it comes to flooding and the damage that it may cause.

The individuals that are more educated on flooding and flood damage are likely to live in an area that is prone to flooding. These locations are often near rivers, streams, or the coast. With a large amount of rainfall, these areas could flood in a few days or even hours. What many individuals do not realize is that flooding can also occur away from large bodies of water.

Many individuals experience backyard flooding or flash floods. Homes in the path of these floods could suffer a large amount of damage. When it comes to flood damage, the repairs must be done correctly. If not repaired correctly, a flood damaged home could be forever ruined. Repairing a flood damaged home the right way does not always come cheap and flood insurance companies know this.

There was a point in time when a number of flood insurance providers where picky when it came to offering coverage plans. Individuals living along the coast or others bodies of water often found it difficult to obtain flood insurance. If they could obtain it, it was often difficult to afford. When this became a problem, a number of flood insurance programs were developed.

One of the most popular flood insurance programs is that of the National Flood Insurance Program. The National Flood Insurance Program is a flood insurance program that was designed to assist homeowner in obtaining flood insurance. The National Flood Insurance Program regulates the coverage plans being offered and the prices they are being sold at. This allows many homeowners to have flood insurance coverage on their homes.

The National Flood Insurance Program is the most well-know program, but there are some local governments that offer their own flood insurance programs. Many of these programs have adapted the policies of the National Flood Insurance Program. The goal of all flood insurance programs is to ensure that a homeowner is purchasing quality flood insurance coverage from a reputable agent.

There are a large number of agents that sell flood insurance coverage, but one of the most reputable and well-known is AmeriFlood. AmeriFlood offers flood insurance coverage that is backed by the National Flood Insurance Program and the Federal Emergency Management Agency (FEMA). In addition to offering quality insurance, the insurance is offered at a discounted price. Most customers receive a discount up to 12%.

Flood insurance coverage is important, no matter where you live. It could not only save your home, but your finances as well. Do not be left alone when you need help the most. Obtain flood insurance coverage that has earned the approval of the government.

Are You Prepared With Flood Insurance as hurricane season approaches

Hurricane season is just around the corner, which means greater potential for flooding and/or flood damage to your home. It doesn't matter where you live, flooding can occur almost anywhere. If you live along the coast or near a body of water, particularly, protection against and preparation for this type of disaster is necessary to ensure your finances are protected. Have you purchased flood insurance?

The Federal Emergency Management Agency (FEMA) reports that flooding is America's #1 natural disaster. From snow melts and flash flooding to tropical storms and dams that have reached capacity, the potential for flooding should always be considered, regardless of where your home is located.

With hurricane season less than a month away, its prime time to be considering flood insurance. Why should you purchase flood coverage? Well, the important fact to be aware of is that homeowner's insurance policies do not cover flood damage or ground water damage from heavy rain. So, even if you've purchased a significant amount of homeowner's insurance and your area experiences heavy flash flooding, damage to your dwelling will not be covered unless you have purchased flood insurance.

Aside from purchasing insurance…

There are a few things you can do to reduce your risk of flooding or experiencing flood damage. The best way to reduce the risk of your home truly being flooded would be to avoid living near a body of water, including rivers and streams. Living in a house on top of a mountain or large hill could also do the trick. If living up in the hills isn't for you or if you insist on living near water, however, flood insurance is your best protection.

What types of flood insurance are available?

Flood insurance is available through two different avenues - the sump pump failure/sewer backup endorsement and The National Flood Insurance Program.

The sump pump failure backup endorsement does not cover true flooding - it simply covers water seepage and runoff. While coverage will vary with each insurance company, keep in mind that this coverage only takes effect if you have a sump pump and only if it does not properly take care of the seeping water.

FEMA established the National Flood Insurance Program (NFIP) in 1968. This program only has one requirement - that you live in a community that participates in the program. This coverage is available in two packages -Emergency program and the Regular program. The programs' distinctions are quite simple. The Emergency program is set up for houses in communities that have applied for, but have not yet been accepted into the NFIA. The Regular program is for homes that are in participating NFIA communities.

Neither the sump pump backup endorsement nor the NFIA completely cover the risk of flooding.

So what should you do?

If you're on the fence about purchasing flood insurance, consider your options and your flood potential. If your home floods, can you afford to do without the flood insurance? While you cannot predict natural disasters, catastrophes or accidents, you can secure your finances for the future if you prepare for those events.

Home Owners Insurance New York - The Effect Of Your Location

1. You'll pay higher premium if you buy a home in a neighborhood that has just a volunteer fire service and not a full-time fire service. Understand that your rates will be further affected by your home's distance from a fire station, firefighting equipment or hydrant. Just know that the nearer your house is to firefighters and their equipment, the lower your quotes will be.

2. Is the area a trouble area? Getting homes in such neighborhoods costs you a lot in home insurance. Please, even where it appears a home is in a low crime neighborhood, still confirm to be doubly sure. It's wise to inquire from an insurance site before you eventually settle for a house. Some houses could be on the borders of crime districts and therefore result in adjoining streets being considered to belong to different districts with respect to crime rate.

3. Check how close the home is from the closest police station. This also will go a long way in lowering your homeowners insurance rate.

4. This is noteworthy in spite of the fact that it's not part of a homeowners policy. Houses in flood-prone areas are not considered properly insured without a flood insurance policy and this will mean close to $500 every year. Apart from if you're buying your house cash, be sure that a flood insurance will be demanded by every mortgagor if your home is in a flood-prone region. Making an adjustment in the region you buy a house will reduce what you spend on insuring your house.

The Way To Get The Best Home Owners Insurance (New York) Rates...

You'll save a lot if you can shop around and do proper comparison. The range of quotes received per request could be as wide as $1,000 for a given person. While this is a good thing, it's important that you don't get too excited yet.

It's not usually that easy if you're after the best price/value. The cheapest price may not represent you the best price/value. Despite the fact that each of the quotes offered will definitely give you the same main coverage; there may be several differences in the details of each insurer's coverage.

This makes it imperative that you find out if there aren't exclusions that won't serve your best interest. Don't forget to treat these no-obligation quotes just that way. Don't feel you have to pay unless you've got all your questions answered to your satisfaction. You will be saved from rude shocks later if you do this.

Why might a homeowner in a flood-prone area not have insurance

Flood insurance was a hot topic in the wake of Gulf Coast hurricanes Katrina and Rita. The lesson taken away from those disasters from a flood insurance perspective was generally the right one - The Congressionally-mandated flood insurance program does not work. Not nearly enough people buy flood insurance - ironically, far fewer buy mandatory flood insurance than would if the market were allowed to educate the public and convince them to buy it. To understand why so many homeowners even in hurricane prone areas lack flood insurance, it’s necessary to learn a little bit about how flood insurance works in America.

The who and what of federal flood insurance

The Federal Emergency Management Agency (FEMA) designates flood zones based on a number of factors, all boiling down to the chance property in the zone will suffer flood damage. Whether federally subsidized flood insurance will be required (under circumstances described below) depends on the flood zone the property is or will be located in.

The National Flood Insurance Program (NFIP) makes federally subsidized flood insurance available, including where mandatory. (The mechanics of how insurance can be legally "mandated" are covered below.) Because NFIP is a federal government program – and so, someone else's money, unsullied by a profit motive -- flood coverage is incredibly cheap.

Flood zones and what they mean (for insurance purposes)

There are three basic types of flood zones designated by FEMA, subdivided into several more detailed zones.

Moderate to Low Risk areas are designated by flood zones B, C and X.

• Generally a less than 1% chance of flooding per year.
• Flood insurance is "available" to homeowners in these zones through the NFIP.

High Risk areas are designated by flood zones A, AE, A1-A30, AH, AO, AR and A99.

• Generally a greater than 1% chance of flooding per year.
• Which generally translates into a 26% chance of flooding over the life of a 30-year mortgage.
• Mandatory flood insurance rules apply for mortgages in these zones.

High Risk - Coastal Areas designated by flood zones V, VE and V1-V30.

• Generally the same chance of flooding as A (High Risk) zones.
• Mandatory flood insurance rules apply for mortgages in these zones.

There is also a Zone D, "undetermined" risk area.

The gulf coast is almost entirely designated High Risk - Coastal Area.

"Mandatory" flood insurance

To understand what “mandatory” means when it comes to flood insurance, it’s useful to step back and consider what Congress is and is not authorized to do under the Constitution.

The federal government cannot constitutionally mandate that people buy flood insurance. It cannot enforce building codes that would restrict the kind of construction authorized in certain flood zones.

What it can do is create a program, like the NFIP, and make it available to communities that pass and enforce flood zone building codes. You may be more familiar with Congress’ threat to withhold highway funds to states that did not set a 55 and then 65 MPH speed limit. Same principle: What Congress cannot constitutionally require, it may accomplish by creating a benefit and threatening to withhold it.

So: Communities become eligible to participate in NFIP by taking steps to ensure new construction and existing structures mitigate flood risk.

NFIP was created in 1968 as a voluntary program. Because of low participation, Congress “mandated” (we’re still getting to what that means) flood insurance in certain areas (now flood zones) in 1973. Participation remained low.

In 1994, Congress enacted flood insurance reform, continuing the “mandatory” nature of flood insurance and establishing new, severe sanctions for nonparticipation, in the form of requiring that homeowners having received relief purchase flood insurance to be eligible for similar help in the future.

You could stop reading here and know a lot about what’s wrong with flood insurance: Congress said that it would only take care of uninsured homeowners’ flood damage once. What this means to most people smart enough to have bought a home is that the federal government will take care of uninsured homeowners’ flood damage once.

Who is subject to the “mandatory” flood insurance law?

Not the homeowner – rather, federally regulated lenders, GSEs and public agencies. These entities are required to ensure that any mortgage secured by structures in a flood hazard area has flood insurance.

If required, flood insurance will be required at the time a loan, including a refi, is made. Generally, notice is given to homeowners that they are required to purchase flood insurance at their expense. If they fail after notice, the lender may purchase it for them and add the cost to the monthly payment if the property is in a flood hazard area.

Life of loan monitoring is not required by law. (This becomes important in a way we will see.)

Lenders face civil money penalties -- no more than $100,000 aggregate per year -- if (and only if) they engage in a pattern or practice of shirking their flood insurance responsibilities.

Why might a homeowner in a flood-prone area not have insurance?

This is the heart of the matter. Considering the history, politics and division of responsibility for ensuring that flood-prone homeowners have insurance, here is why they don’t:

1. People think homeowner's insurance covers floods. It doesn't.
2. Their property may not technically be in a flood zone designated by FEMA as requiring insurance, so it's not mandatory.
3. They worked through a non-federally regulated mortgage lender, that did not sell their loan to Fannie Mae or Freddie Mac, so it’s not mandatory.
4. They have no mortgage -- it may be paid off or never have been encumbered (the 90-year-old home that's been in the family for three generations).
5. Lenders may not comply. A company originating $50 billion in mortgage loans in a quarter might economically view avoiding a possible $100,000 penalty as not worth the cost of rigorous compliance.
6. Homeowners get the insurance to get through closing, but then let coverage lapse, and they haven't been "caught" because there is no mandatory life of loan monitoring.
7. Their community may not participate in the program.
8. They assume the government will make them whole after losses without their buying insurance. Generally, they’re right.

Flood insurance represents a failure of central planning, and an apt demonstration of it inferiority to the free market. To better ensure that homeowners in hurricane prone areas are insured in greater numbers, Congress should bite the bullet and withhold aid where flood insurance was cheaply available and a choice was made not to purchase it (continuing to help those who lack insurance for reasons beyond their control). It should continue to require flood insurance at loan closing where it has the power to do so, but open the market to private insurance companies and require life-of-loan monitoring if it’s serious about enforcing an insurance requirement. And penalties must be increased – the current one simply is not an economically feasible deterrent.

How to Get Low Cost Louisiana Homeowners Insurance?

As thousands of homeowners in New Orleans discovered after Katrina hit, you can lose everything you own if you don't have homeowners insurance. Here's how to get homeowners insurance in Louisiana at the best rate possible.

What Homeowners Insurance Covers

A homeowners insurance policy covers the following:

Your home - Homeowners insurance will pay to rebuild or repair your home after it's been damaged or destroyed by fire, hail, vandalism, plumbing leaks, or acts of nature.

Your possessions - Homeowners insurance will pay to replace any personal property (clothing, furniture, appliances, etc.) that's been stolen or damaged by fire, hail, vandalism, plumbing leaks, or acts of nature.

Additional Living Expenses - Homeowners insurance pays for your additional living expenses - hotel and restaurant bills - when your home is damaged or destroyed and you need to stay somewhere else while it's being repaired or rebuilt.

Personal Liability - Homeowners insurance pays your and your family's legal fees and court costs when you injure someone or damage their property.

What Homeowners Insurance Doesn't Cover

Many New Orleans residents discovered all too late that standard homeowners insurance policies do not cover damage to your home caused by floods. If you live in a flood zone you need to purchase flood insurance. For information on where to buy flood insurance, visit the National Flood Insurance Program website at: floodsmart.gov.

Some policies also place a limit on the amount of coverage they will provide for expensive items like jewelry, computers, antiques, etc., so check your policy and purchase additional coverage if you need it.

Where to Get Low Cost Louisiana Homeowners Insurance

To get the best price on homeowners insurance you need to do some comparison shopping. The easiest way to compare rates is to go to an insurance comparison website where you can get rates from a number of insurance companies.

What Does a Homeowner's Policy Cover during Flood and Water Damage?

Water damage is tricky on a homeowners policy, because the answer is, "It depends." It depends on where the water comes from, and what it damages. It also depends on your company and your policy.

First, let's cover some of the types of water damage that are typically covered. Keep in mind that policies vary from company to company, and from state to state, so you should consult with your local agent to determine exactly what coverage you have and what adjustments you might need to make. These are some general cases about homeowners policies, but only your agent can tell you if they apply to your own homeowners policy.

Storm Damage. Typically, if a storm damages your house, the house itself is covered, and so are your possessions inside the home. For your possessions to be covered, however, most policies require that the possessions be inside the house, that the house itself be damaged, and that the damage to your possessions be a result of the damage to the house. In other words, if the storm breaks a window and the rain blows inside onto your computer, your computer would typically be covered. But if you leave the window open and it rains on the computer, you might not be covered.

• There is one more very important thing to note regarding storm damage. There are special cases where a storm includes both rain and flood in the same storm. Rain is usually covered, but flood is not (see "Flood" below.) This is most visible in the case of a hurricane, where the storm blows ocean water onto the land ("storm surge"), but it can occur in any storm when heavy rains cause the rivers and creeks to overflow. Talk to your agent about "concurrent causation."

Burst Pipes, Fixtures, or Appliances, or Accidental Overflow. This might mean a pipe in the basement freezing during the winter, or the toilet overflowing, or the water heater bursting. Most homeowners policies cover water damage resulting from burst pipes, fixtures, or appliances, or accidental overflow. (Be sure to check with your agent, however, because a few of the more limited policies do not include this coverage.) There are a couple of exceptions to note:

• If the damage was caused by an appliance that breaks, such as a water heater or dishwasher, your policy might not cover the appliance itself--that should be covered by its own warranty. But most homeowners policies will pay for damage to the home or to your possessions caused by the failed appliance.
• If your home will be vacant, unoccupied, or under construction, you might have some additional limitations on your coverage. Take reasonable precautions against freezing by maintaining heat in the home, and shutting off the water supply and draining the water from the pipes and appliances. Also be sure to talk to your agent.

Next, there are some important cases where your homeowners policy might not cover water damage. You should discuss these carefully with your agent to see if they apply to your homeowners policy.

Flood. Homeowners policies do not cover floods. A flood is when normally dry land is temporarily covered by water, whether that water comes from storms and/or surface runoff, overflow of a lake or river, overflow of tidal waters onto the land, or mudflow. The Federal Emergency Management Agency (FEMA) administers the National Flood Insurance Program, which is responsible for mapping out the areas most prone to floods and providing a flood insurance program for homeowners. Talk to your insurance agent who handles your homeowners policy. In most cases, he or she can tell you the level of risk for your home based on the flood hazard maps, and can provide you with a flood insurance policy if you decide to protect yourself. (Remember that 30% of the flood claims filed each year are in moderate- to low-risk areas, areas where residents don't expect to have a flood.)

Water Backup. Most homeowners policies do not cover water that comes up from below the surface of the ground. If you have a basement, you have some maintenance to do to keep everything intact and sound.

• Maintain the walls to keep intact and stable, watch for and repair and cracks or bowing, and keep them sealed to prevent seepage.
• Ensure that you have good drainage around the house to prevent water from building up next to the basement walls. Keep the gutter downspouts draining out several feet away from the walls, and grade the ground so that surface water drains away from the house into the sewer or drainage ditch.
• If you have a sump pump, sump pump well, or other system designed for the removal of subsurface water, keep it maintained and tested. Some companies offer optional coverage for sump pump backup or failure. Ask your agent if this is an option for your policy. Especially if your basement if finished, you could suffer a major loss if your sump pump fails and you don't have sufficient coverage.

Seepage. This means continuous or repeated seepage of water, steam, or fuel over a long period of time, such as water leaking around the shower that damages the flood underneath the shower over the course of several months. Most homeowners policies cover only "sudden and accidental" losses. If the pipes leading to the shower burst suddenly and the water damages the flood, the water damage would be covered. But if the faucet leaks a little bit each time you use the shower, and you ignore it so that the damage occurs over several months or years, this would be considered a failure to maintain it properly, and many homeowners policies would not cover it.

One more thing to keep in mind is that building codes change over time, and you might have to repair the damage differently to comply with updated building codes. Most homeowners policies, however, only reimburse you for what was damaged, not for the upgrade. If your thirty-year roof is damaged in a hailstorm, for example, but new codes require you to replace it with a forty-year roof, you might have to pay the difference unless you have Building codes cover.

Finally, keep in mind that it is your responsibility to take reasonable steps to prevent further damage after a loss has occurred. If your home has been damaged by a storm and water is coming in, cover the damaged area with a tarp, and move your possessions away from the area. If a pipe has burst, shut off the water in the pipe until it is repaired.

Homeowners policies have many different options, and they can be bewildering. Typically we find people fall into one of two groups. One group has their agent explain the policy and the limitations, so that they have the opportunity to close gaps like the one above--or to decide that certain things aren't worth the extra cost. The other group doesn't want to deal with it, so they prefer to wait until they have a claim and then find out whether it is covered.

Which group are you in? If you're in the first group, bring up these questions with your agent at your next Annual Protection Review. We have some general information about homeowners policies posted on our web site, but every company's homeowners policy is slightly different, and the coverages also vary by the state where you live, so please go over your policy with your agent.

Your home is one of your biggest assets, so you need to protect it properly. More importantly, it's your dream. If your policy can't be adjusted to get the coverage you need, consider shopping for a different company. And if your agent can't answer your questions, consider shopping for a different agent. This type of consultation is the agent's job. It's why you pay him! Don't you deserve to have your home protected?

Cheap Homeowner's Insurance Online in Kentucky

As is the case in virtually every other state, insurance companies in Kentucky don't offer flood insurance to homeowners. Instead homeowners who are interested in this type of coverage can speak to their insurance agent about buying a flood insurance policy separately. This should really only be a consideration if the home is located in an area of the state where flooding poses a real risk.

If you are looking for a standard homeowner's insurance policy in Kentucky a great place to turn to is the Internet. There are many resources available that directly relate to this particular type of insurance. Not only will you be able to find quotes, but you'll also find valuable information pertaining to saving money on the insurance.

One of the most effective ways to get cheap homeowner's insurance online in Kentucky is by taking advantage of discounts. Discounts are available for every type of insurance and home and renter's insurance is no exception.

Some of the common discounts, that almost all companies offer, include those for deadbolt locks on exterior doors, smoke alarms, fire extinguishers and storm shutters. Some companies in Kentucky also offer a percentage reduction for homes that are located near fire hydrants or fire houses as these homes have less of a risk when it comes to fire damage.

If you are a senior or you work from home, consider yourself lucky. The majority of homeowner's insurance companies in Kentucky will offer a premium reduction for folks who are at home most of the time. If this is the case with you, be certain to make note of it when looking for quotes.

Once you do decide on a company, do a little background research on them to ensure that they have a solid reputation in the state. Although you do want to find a cheap insurance policy you also want to be certain that the company you choose will be there to back you up when you need them.