Since standard homeowners insurance doesn’t cover flooding, it is important to have protection from the floods associated with hurricanes, tropical storms, heavy rains and other conditions that impact us throughout the year.
In 1968, Congress created the National Flood Insurance Program (NFIP) to help provide a means for property owners to financially protect themselves. The NFIP offers flood insurance to homeowners, renters, and business owners if their community participates in the NFIP. Participating communities agree to adopt and enforce ordinances that meet or exceed FEMA requirements to reduce the risk of flood damage.
On October 29 many of our lives at the Jersey Shore changed forever. The Superstorm or Frankenstorm, aka Hurricane Sandy, but in reality, the storm was a named Tropical Storm. Regardless of what we call it, the devistation is extensive and will take months, probably years to rebuild and restore.
Part of the rebuilding expense will be covered by various insurance policies, whether it be flood insurance, business insurance or homeowners insurance. The remainer of the expense to rebuild and restore will be from minimal grants and SBA loans.
With disaster assistance through sba loans for your home or business, there are certain requirements to qualify. The three main requirements are the ability to pay back the loan, credit score and the purchase of flood insurance. The flood insurance requirement is for the entire life of the loan, just as if the loan was for a first position mortgage.
Should you be required to purchase flood insurance, it is important to make sure you have sufficient coverage and understand how it will come into affect in case of another disaster. It is important to have both structure and contents, with deductibles that are affordable. Flood insurance should be an important part of your insurance portfolio regardless of the flood hazard area of which you live.
There are great websites to review to learn about disaster assistance and flood risks. http://www.floodsmart.gov and http://www.disasterassistance.gov. These two sites are great, but it is important to talk to a flood insurance specialist to get rates and review coverage options.
For further information, please call us at 877.288.7169 and ask about your needs.