What flood insurance covers?
In the event of a flood, your National Flood Insurance Program (NFIP) policy covers direct physical losses to your structure and belongings.
What does my policy cover?
Purchasing flood insurance will help protect the things you value. The NFIP offers two types of coverage – building coverage and contents coverage – to protect your home and belongings. Here are examples of what’s covered with NFIP flood insurance:
Flood insurance options
There are two main options for flood insurance.
The first is through the federal government’s National Flood Insurance Program (NFIP). This is administered by the Federal Emergency Management Agency (FEMA).
The second option is private flood insurance. There are more private insurance companies offering flood insurance today than ever before.
There are reasons why private flood insurance is more popular. It can sometimes be more affordable than federally-backed insurance. Private policies may also provide broader, more favorable coverage, including higher limits.
What’s the difference?
Federal flood insurance coverage is backed by taxpayer money. Such insurance is dependent on the money that the government has available. Private flood insurance companies are for-profit businesses that get their funding from policy premiums and reinsurers.
Flood insurance options
There are two main options for flood insurance.
The first is through the federal government’s National Flood Insurance Program (NFIP). This is administered by the Federal Emergency Management Agency (FEMA).
The second option is private flood insurance. There are more private insurance companies offering flood insurance today than ever before. The Insurance Information Institute wrote $589 million in private flood insurance premiums in 2017. This is up 57% from 2016.
There are reasons why private flood insurance is more popular. It can sometimes be more affordable than federally-backed insurance. Private policies may also provide broader, more favorable coverage, including higher limits.
What’s the difference?
Federal flood insurance coverage is backed by taxpayer money. Such insurance is dependent on the money that the government has available. Private flood insurance companies are for-profit businesses that get their funding from policy premiums and reinsurers.