Flood insurance coverage is fairly new since it was generally unavailable until the federal government became involved. In 1968, Congress created the National Flood Insurance Program (NFIP) to make flood insurance available to eligible communities through federal subsidization. What that means is that flood insurance is only available through government entities since insurance companies don’t provide coverage for it. The program is managed by the Federal Insurance Administration (FIA), which is a branch of FEMA.
There are two types of flood insurance programs available: emergency and regular. The emergency program goes into effect when the community applies to the NFIP and remains in effect until the government finalizes the flood insurance rates for that community. Under emergency program, insured may purchase limited amounts of flood insurance for buildings and contents at subsidized rates. Under regular program, additional coverage may be purchased that wouldn’t be allowed under emergency program.
The following scenarios are covered under flood insurance.
1. An overflow of inland or tidal waters
2. Unusual and rapid accumulation or runoff of surface water from any source, unless general flooding exists.
3. Mudslides caused by accumulations of water on the ground or underground.
4. Collapse of land as a result of excessive erosion due to flood.
(Sewer backup into a dwelling is not covered.)
Almost any building that is walled and roofed, is principally above ground, and is fixed to a permanent site is eligible for coverage under a flood policy. The policy may cover a building, its contents, or both. Coverage does not take effect until after a waiting period of 30 days following the date of application.
If you have any questions about flood insurance or would like to know more about it, give us a call at 860 684 2721 or visit our website for more information.