| The National Flood Insurance Program (NFIP) | | | | cover minor flood damage, but in the event of |
| regulates insurance agencies as well as the cost | | | | severe damage or total loss, homeowners could |
| of insurance. They also deal with many of the | | | | be paying quite a bit out of pocket. This is why |
| flood damage claims that come in. In most states, | | | | getting more insurance is important. |
| you can purchase flood coverage through the | | | | With excess flood insurance, you can be insured |
| same company that sells homeowner's insurance, | | | | for far more than the NFIP maximums, enough to |
| but in states where this is not available, the NFIP | | | | cover the cost to rebuild your entire home and |
| is there to help. However, many times, the | | | | replace its contents. This type of flood coverage |
| insurance offered by the NFIP is inadequate in the | | | | is generally purchased through an excess and |
| event of a major flood. For this reason you will | | | | surplus carrier, though some insurance companies |
| want to cover yourself with extra water damage | | | | carry it to build more business, rather than to risk |
| coverage insurance. | | | | having you take all your water damage insurance |
| Excess flood insurance is coverage for above and | | | | needs to a separate entity. |
| beyond the NFIP maximum set amounts. When | | | | Getting extra insurance is a good idea if you own |
| you purchase primary insurance through the | | | | a home, property, or business that is valued |
| National Flood Insurance Program, you will be | | | | higher than the NFIP maximum amount for |
| insured for a maximum of $250,000 for your | | | | insurance coverage. Excess flood coverage is |
| home, $100,000 for the contents, and $500,000 | | | | available for anyone in a "flood zone" where |
| for businesses. While this amount is typically | | | | flooding is frequent and highly likely. With it, you |
| adequate for modular homes and single-story | | | | don't need to worry about cost after a flood hits, |
| houses, larger homes could be far more | | | | which is a big selling point; getting to be worry |
| expensive. With these more expensive homes, | | | | free even in the face of disaster. |
| $250,000 might make a large dent in the cost to | | | | |