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More About Flood Insurance

Many people assume that flood coverage is included in their home or business insurance. This is not the case in most situations. However, homes and businesses in some areas are required to purchase flood insurance on the structure of the building, at the very least, if there is a mortgage or lien on the structure.

Most flood policies have a 30-day waiting period. Since the federal government guarantees flood protection, this is a safeguard built in to protect the program. For homeowners, this means that you cannot afford to wait until a flooding event occurs or appears imminent before you purchase the coverage.

NFIP offers two types of coverage for homeowners, each with very specific coverage limits. Building property limits cap at $250,000 to repair the structure of the building and $100,000 to replace personal belongings or contents of the building. Each policy is an individual policy. You must have both in order to have complete coverage as a homeowner. On the other hand, renters only need flood coverage for their personal property (furniture, clothing, etc).

New Jersey has more coastal real estate than the average citizen realizes. People who live work in coastal areas need flood insurance protection to help guard against tidal surges resulting from rogue storms, waves, tropical depressions, hurricanes, and more.

Of course, it’s important to understand that you do not need to live in a coastal area to be the victim of a flood. They happen all the time, far away from rivers, lakes, and oceans. 

Some of the incidents that can lead to flooding are: