Currently, there are over 2 million flood insurance policies in effect in Florida. This is due to the nature of the high risks associated in living in this state. Tropical storms ravage areas of Florida annually, especially along the coastal shores. Fortunately for those requiring assistance, flood insurance in Florida has evolved throughout the years since its inception.
Nationally, the number of policies has risen to over 5.6 million, and this is due in part to the fact that there have been significant changes to the National Flood Insurance Program (NFIP). The Community Rating System was implemented during the 1990s which has increased the amount of flood insurance nationally and which also established a grant program for mitigation plans and projects.
Today, coverage is available to more than 20,000 United States communities and territories, and nearly 100 private insurance companies now offer national, government-backed flood insurance. And even though federal assistance will remain a crucial part of disaster recovery, the U.S. taxpayers save millions of dollars each year through the NFIP.
Flooding remains a primary concern for many Florida residents
Flooding remains the highest ranked natural disaster in the United States, according to FEMA. Because flooding is not generally covered by a standard homeowners policy, those living in flood plains, and areas prone to flooding, really should purchase this valuable coverage. While many homeowners don’t think that they live in a flood zone, in reality, FEMA has designated the entire state of Florida as a flood zone with varying levels of risk.
If a building is in a Special Flood Hazard Area, the agency or lender is required by law to require the recipient to purchase a flood insurance policy on the building. Floodwaters can damage structures, and the contents of homes, including valuable furniture and electronics. The cost of replacing a house full of valuables far outweighs the cost of insurance.
A concern for many residents is their belief that flood insurance policies are expensive. Actually, if homes or businesses are located in a Preferred Risk Zone as determined by FEMA, owners of these properties can purchase flood insurance at a reasonable cost (in many cases, less than $150.00 per year).
Knowledgeable agents that specialize in flood insurance, and possess extensive knowledge can assist those interested in purchasing coverage with any questions or concerns and are also able to assist residents with understanding the basics about Florida flood insurance, including addressing any of the common misconceptions.