California homeowners who live in areas where there is the possibility, or probability of flooding, know how much devastation it can cause. Some of these same homeowners are under the mistaken impression that their homeowner's insurance will cover the damage. They couldn't be more wrong. Without the protection of the FEMA or private flood insurance CA underwriters provide, homeowners are out of luck when it comes to getting reimbursed for the costs of repairing or replacing their residences.
During the Obama years, a number of laws were enacted that attempted to curtail rising prices, regulate government policies, and allow protections from flooding by introducing independent underwriting. The commercial agencies that resulted are extremely competitive and offer the exact coverage FEMA plans offer. They go so far as to share claims adjusters with the government agency.
Those who are interested in purchasing one of these policies will have to meet certain criteria. Protection is not offered in every state. Companies cover residential buildings, that only have four or fewer units, and nonresidential structures. Renters can purchase policies, but not for the residences they lease. Their contents can be covered, but not the structure.
People who own or live in condominiums and mobile homes are not eligible for protection. Homes that had flood damage within the last five years will not qualify for a policy, nor will properties still recovering from flooding events. Property that does not meet their state's floodplain management regulations are exempt from coverage. When FEMA puts affected real estate in the severe repetitive loss category, companies will not insure them.
Total reimbursements do have limits, and homeowners should be aware of this. Half a million dollars is the most the underwriter will allow for a residential or commercial building. Up to a quarter of a million dollars for contents located in residential structures is allowed and a maximum of half a million dollars for contents in commercial buildings.
There may or may not be a waiting period before the policy goes into effect. Individuals who are getting a mortgage from a federally regulated lender, that requires the coverage, will have coverage as soon as the transaction closes. Policy holders who want to switch companies do not have a waiting period, as long as the previous company is an approved insurer. Homeowners who have let a policy lapse can get insured, but may have to provide a no known loss statement from the previous insurer.
There are ways to reduce the cost of protection. Purchasing property that is elevated is one of them. A home located in an area where flooding is common, can either be built on stilts, as many homes in Florida are, or be constructed on an elevated piece of land.
Some people risk the threat of flooding because they love living in areas with large expanses of water and beautiful views. Those with experience make sure they have a policy in place in the event floods occur.
During the Obama years, a number of laws were enacted that attempted to curtail rising prices, regulate government policies, and allow protections from flooding by introducing independent underwriting. The commercial agencies that resulted are extremely competitive and offer the exact coverage FEMA plans offer. They go so far as to share claims adjusters with the government agency.
Those who are interested in purchasing one of these policies will have to meet certain criteria. Protection is not offered in every state. Companies cover residential buildings, that only have four or fewer units, and nonresidential structures. Renters can purchase policies, but not for the residences they lease. Their contents can be covered, but not the structure.
People who own or live in condominiums and mobile homes are not eligible for protection. Homes that had flood damage within the last five years will not qualify for a policy, nor will properties still recovering from flooding events. Property that does not meet their state's floodplain management regulations are exempt from coverage. When FEMA puts affected real estate in the severe repetitive loss category, companies will not insure them.
Total reimbursements do have limits, and homeowners should be aware of this. Half a million dollars is the most the underwriter will allow for a residential or commercial building. Up to a quarter of a million dollars for contents located in residential structures is allowed and a maximum of half a million dollars for contents in commercial buildings.
There may or may not be a waiting period before the policy goes into effect. Individuals who are getting a mortgage from a federally regulated lender, that requires the coverage, will have coverage as soon as the transaction closes. Policy holders who want to switch companies do not have a waiting period, as long as the previous company is an approved insurer. Homeowners who have let a policy lapse can get insured, but may have to provide a no known loss statement from the previous insurer.
There are ways to reduce the cost of protection. Purchasing property that is elevated is one of them. A home located in an area where flooding is common, can either be built on stilts, as many homes in Florida are, or be constructed on an elevated piece of land.
Some people risk the threat of flooding because they love living in areas with large expanses of water and beautiful views. Those with experience make sure they have a policy in place in the event floods occur.
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