Flood insurance isn’t normally covered by homeowners insurance, so in order to make sure that homeowners in specific areas are protected, the National Flood Insurance Program(NFIP) was established. Flood insurance policies are underwritten by the government through this program and as a homeowner, you’ll be able to purchase a flood insurance policy through one of the many flood insurance brokers out there. It’s important to mention that the providers are authorized and in the event you’d like to change your current provider, you can only do so if there’s another NFIP authorized provider in your area.
If you’d like to learn more about whether your area is covered by the NFIP, call your insurance agent or the NFIP direct. If you live in an area that’s prone to flooding, then you need to carry a flood insurance policy, especially if your mortgage is from a regulated or a federally insured mortgage company. Therefore, if your property falls into this category, then cancelling your current policy isn’t possible until you have a new one.
If you really want to change your policy though, then you need to get in touch with your current flood insurance company. You can usually get it if you change your coverage amount or alter your deductible. You can learn more about your options by getting in touch with the insurance company. A lower deductible policy or a policy that increases coverage usually comes with higher monthly payments. Because of that, it’s important to speak to your insurer and have them send you a copy of your options (in writing). Carefully review the policies and then choose the one that best meets your needs. You can start making payments as soon as your application is approved.
You need to gather as much info about your home as possible, including valuable items you’d like covered, property values, mortgage value, etc. Depending on your provider, some may even offer you affordable plans with high deductibles. You should choose such plans if you are unable to get flood insurance due to the high costs associated with it or you’re okay with paying the deductible. After you’ve been approved, you should also cancel your old insurance policy.
Your monthly premiums will be directly influenced by the level of risk associated with your area, including your property’s flood history and the value of your home.