Why You Should Opt For Private Flood Insurance

As an alternative to the National Flood Insurance Program (NFIP), private flood insurance will get you a great policy at a very good price. Private market insurance has been around for seven years now and the market is ever-growing. This means that if you got a private market flood insurance a while ago, it may be time to look for a new and better one with better rates.

Rating of private flood insurance is not usually dependent on an elevation certificate. Private flood insurance companies are using some of the latest technology to assess risk and come up with rates which are a true reflection of the property’s true flood insurance cost. This technology has enabled many NFIP policyholders to save significantly huge sums on policy rates with private market insurance.  There are many options in the market and choosing the best flood insurance might deem challenging.

Private market insurance policies are custom made, unlike NFIP policies. This ensures you get cheaper rates and better coverage. When the NFIP was set up, there was inadequate research on matters like risk mapping. This is the reason for their unreasonable rates and not so good rates. NFIP was run as a monopoly and this gave them leeway to hike premiums and reduce policy coverage. Private flood insurance policies came in to cover properties better and at a lower cost.

A number of private flood insurance policies make it possible to cover multiple structures with only one policy. Having one policy covering all the properties you own can save you a lot of money. Unlike the NFIP, private flood insurance policies may offer greater limits of coverage. With the immense rise in the value of the property, the cost of rebuilding has shot up. If your property is valued at a price higher than the NFIP’s limit, then you will be required to purchase excess flood coverage. This will surely cost you more. In the private flood insurance market, you can cover your property fully under a single policy .Discover more here.

Unlike the NFIP, private flood insurance companies will not penalize you if you own a second investment property or home. If your other property is in a flood zone, NFIP will introduce additional fees on the already huge premiums. It is only logical that property owners with property in high-risk flood zones will benefit most from private flood insurance policies. Because private flood insurance companies comply with government guidelines, any lender will surely approve their policies. The process of obtaining a private flood policy is really fast and can even be done on the day payment is completed. Read more about this insurance company.

Read more here: https://en.wikipedia.org/wiki/Category:Flood_insurance