When normally dry land of two are more acres or consisting of two or more properties is temporarily covered with water, the condition is called a flood. The causes of a flood could be many - hurricanes, rainstorms or even a block in the drain. Though some regions have a regular flooding, areas not susceptible to floods may also get inundated due to reasons like rainfall, developmental activities carried on, tide flows and so on.
Floods cause damage to residential as well as commercial properties and it is advisable for people living in flood prone areas to buy Flood Insurance Rates after determining Flood Insurance Rates.
Even a small flood can causes huge losses to property owners. The structure as well as the contents of the building may be damaged. Also, many homeowners are under the wrong impression that the homeowner’s insurance which they carry would cover flood losses too. To protect themselves against flood risks, people living in areas susceptible to floods should separately buy Flood Insurance Rates. Though they may find Flood Insurance Rates expensive, they would be protected from losses to property due to flooding making the expense worthwhile.
Flood Insurance Rates quoted by insurance companies are determined on the basis of various factors.
For the purpose of Flood Insurance Rates, regions are classified as
High risk areas – These are the areas which get flooded regularly due to a specific reason. People living in these regions would have to pay high premium because of the high degree of risk and the policies they take are called ‘standard Flood Insurance Rates’ policies.
Moderate to low risk areas – These areas are those where the chances for flooding are minimal. Chances of claims arising are few and so insurance companies charge low premium. The policies taken by people belonging to these areas are called ‘preferred risk’ policies.
Undetermined risk areas – These are regions where the risk of flooding has not yet been determined by the insurer. The Flood Insurance Rates for these areas are moderate.
A person who wants to take Flood Insurance Rates can opt for ‘building only’ coverage. This means that the insurance company will indemnify the insured for the loss caused from damage to the building. If he wants to be protected from loss caused by damage to the contents of the building he can select the ‘contents only’ cover. He also has the option of taking combined coverage. The Flood Insurance Rates will depend on the kind of coverage.
Often, the insured decides to have a deductible in is insurance policy to reduce the Flood Insurance Rates. ‘Deductible’ is that part of the loss which the insured is ready to bear himself. Any loss above that to the extent of the policy amount would be paid by the insurance company.
The amount for which Flood Insurance Rates is taken would influence the Flood Insurance Rates. Higher the policy amount, greater would be the premium.
A person who wants to buy Flood Insurance Rates would want a policy which offers the best rates. Towards this end, he would want to first compare Flood Insurance Rates of various insurers. He can get this information from individual insurance companies or from insurance agents. The most convenient way however, would be to visit an insurance website which would give comparative Flood Insurance Rates of different insurance companies. This data could be got free of cost after entering details like amount of insurance, coverage and so on.
People who take Flood Insurance Rates do not have to worry about the financial loss they would suffer when floods occur. Flood Insurance Rates though expensive, would not pinch if they budget the insurance premium in their annual household expenditure.