Your Palm Beach County Real Estate Market News by Lilianna Gizynski
Hurricane season begins June 1, which means homeowners and renters need to buy a National Flood Insurance Program policy now to be prepared for disaster.
A flood insurance policy generally takes effect 30 days after purchase, and homeowners and renters insurance does not typically cover flood damage.
Flooding is the most common and costly natural disaster in the United States and mostly in Florida, and it can occur almost anywhere — not just in high-risk areas. On average, 25 to 30 percent of all flood claims paid by NFIP are for properties outside high-risk flood areas.
If your community participates in NFIP, you can buy affordable protection that insures a single- family home for up to $250,000 and its contents up to $100,000. Renters can cover contents up to $100,000. Non-residential property owners can insure a building up to $500,000 and contents up to $500,000.
A 30-day waiting period must pass before most flood policies become active. Some policies, however, start sooner:
If your building is newly designated in a high-risk Special Flood Hazard Area, and you buy flood insurance within the 13-month period following a map revision: One-day waiting period.
If you buy flood insurance in connection with making, increasing, extending or renewing your mortgage loan: No waiting period.
If you select additional insurance as an option on your flood insurance policy renewal bill: No waiting period.
If your property is affected by flooding on burned federal land, and the policy is purchased within 60 days of the fire-containment: Possible waiver of a waiting period.
You can purchase flood insurance through an insurance agent.