About the National Flood Insurance Program (NFIP).
It is known that flood causes the most catastrophic losses and the costs needed for repairing and reconstruction could be incredibly high. This is the main reason why standard homeowner insurance policy does not cover against flood. Moreover, companies can’t provide enough coverage against major flooding. Just think about hurricane Katrina and terrific losses it caused. However, major flooding happens from time to time and there is a need to be insured for such cases. Thus, the Federal Government worked out the strategy and created the National Flood Insurance Program (NFIP). This program is valid all around the country. The ways you can get it are the following:
1. The most common way to purchase policy is to buy it from a usual company which works in cooperation with the Federal Government. Though companies write applications and settles claims, this is the Federal Government which pays the bills.
2. The second way to buy a policy is to live in flood hazard area. When you are the member of national flood program, discounts for policies are available for you. You may also buy it at subsidized rates.
Usual mistake of customers: People prone to purchase flood or hurricane insurance policies exactly before the disaster. The thing is that they usually don’t know about 30-day waiting period. So, be aware that any flood insurance policy come to effect minimum in 30 days, and the term may vary. Concerning your car insurance coverage, you won’t get one for physical damage if the national weather service predicts flood or hurricane to happen.
