Hurricane season is upon us yet again, so if you haven’t purchased flood insurance yet, you could be testing fate.
Unfortunately, buying flood insurance as a hurricane warning is sounding in your community won’t protect you and your home, and here’s why.
Unlike most other types of insurance, flood insurance takes 30 days to start after you’ve purchased it, so even if you’ve just paid your yearly premium in full, you won’t be covered for another month. Instead of waiting until it’s too late, you might want to purchase or review your insurance policy now so you know you’ll be protected by the time the next hurricane or major storm system rolls in.
[pullquote]You may be required to carry flood insurance on properties that are considered high-risk for flooding in order to get a mortgage.[/pullquote]
A common misconception about flood insurance is that you have to live in a high-risk area to be eligible to purchase it. This isn’t true. In fact, if you live in a low or moderate risk area, you might be able to save on your premium.
There are two ways you can purchase flood insurance. One is through the National Flood Insurance Program (NFIP), which will require that you live in a participating NFIP community in order to be eligible for flood insurance.
If you don’t qualify for federal flood insurance or if you’d like to shop around for the best rates and coverage options, you can also purchase private flood insurance. In either case, however, you’ll need to go through an agent or broker, as you cannot purchase insurance directly from the government.
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