Unpreparedness before Tragedy—When Floods Strike

Flood unpreparedness can leave homeowners and businesses in deep water when they do not have a strategic plan.

Businesses, self-proprietors, renters and first-time homeowners can use their diligence to find helpful insurance. Before low-pressure systems and seasonal storms can turn regions from congenial to inhabitable when floods strike.

Why would you need flood insurance?

The immediate answer is before a flood happens.

20 percent of flood claims arise from damage that happens to homes existing outside of high-risk flood zones. A mere one inch of water inside a building from flooding can run a cost in the tens of thousands.

While renters’ and homeowners’ policies do not often offer standard flood coverage.

At Neff & Associates Insurance Services Inc, we recommend all proprietors and dwelling owners should have flood insurance as a part of their overall preparedness plans.

You or your community may be required to have flood insurance.

Your federally insured or regulated lender must require insurance against floods:

• on properties that are mortgaged, and

• that exist in locales at a high-risk of flooding.

However, even when a property is not located in a flooding area of high-risk, you may be asked to carry flood insurance by your mortgage lender.

Are there any special kinds of flood insurance?

Properties existing within areas designated as hazardous from floods may require flood insurance to qualify for federal disaster assistance.

The majority of disaster assistance of the federal level sources as low-interest loans by the Small Business Association (SBA) and must be repaid.

The Federal Emergency Management Agency (FEMA) has the authority to enforce obtaining flood insurance. Or where it is available according to the National Flood Insurance Act.

However, grants that are provided by FEMA do not require any repayment for those who are eligible.

Residential policyholders (homeowners and renters) and non-residential policyholders (business owners) in the Pismo Beach CA area should find an insurance representative nearest to them.

Be certain you will be able to ask the insurance agent any flood policy requirements such as:

• what contents inside of a building are covered,

• any contents that are not covered by the policy,

• if there is a deductible,

• is a 30-day waiting period actuated while the policy takes effect, and

• whether there is a national surcharge if the insurance is a National Flood Insurance Program (NFIP) purchase.

An insurance agent versed in renters or homeowners insurance serving Pismo Beach, CA may also be able to assist you with getting flooding insurance.

Neff & Associates Insurance Services Inc can help you sort and choose the flood insurance that is right for you: contact us to speak with one of our friendly and knowledgeable associates today.