Although the federal government operates the National Flood Insurance Program you can only purchase Flood insurance through an insurance agent; you cannot buy it directly from the federal government.
As with any other type of insurance, it's important to know what your policy does and doesn't cover. For example, damage caused by a sewer backup is only covered by Flood insurance if it's a direct result of flooding. The damage is not covered if the backup is caused by some other problem.
Deductibles apply separately to building and contents with different amounts to choose from. Like other insurance plans, a higher deductible lowers your premium you pay, however, it also reduces your claim payment. Your mortgage lender may also set a maximum amount for your deductible.
Homes and businesses with mortgages from federally regulated or insured lenders in high-risk flood areas are required to have Flood insurance. While Flood insurance is not federally required if you live in a moderate-to-low risk flood area, it is still available and strongly recommended.
Rates for coverage through the NFIP are set and do not differ from company to company or from agent to agent. Rates depend on several factors, including the date and type of construction of your home, along with your area's level of risk. Most premiums include a Federal Policy Fee and ICC Premium. If your community participates in the Community Rating System (CRS), you may qualify for an insurance premium discount in some communities of up to 45% if you live in a high-risk area and up to 10% in moderate-to-low risk areas.
Typically, there's a 30-day waiting period from date of purchase before your policy goes into effect, subject to the following exceptions:
Personal Contents Property
Coverage is limited in basements regardless of zone or date of construction. It's also limited in areas below the lowest elevated floor, depending on the flood zone and date of construction. These areas include:
Always ask your GHM agent for additional details on your basement coverage.
Foremost Insurance Group
Patriot Insurance Company
Philadelphia Insurance Companies