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Flood Insurance or Home Insurance: Understanding Your Coverage

Owning a home is great, but it also comes with many responsibilities. Knowing how to safeguard your house against various risks is essential. One of the best ways to protect your home and property is to purchase insurance. However, trying to decide on the right insurance policy can be difficult due to all of the available options. Doing some research and reaching out to an insurance agency is an excellent way to clear things up and make it easier to see why home insurance and flood insurance are a necessity for anyone living in Florida.

What Does Standard Home Insurance Cover?
Most people are familiar with standard home insurance, which usually covers damage to your home caused by perils like fire, theft, and certain natural disasters. However, it’s important to read the fine print. Standard home insurance often excludes flood damage. If a tropical storm or hurricane leads to flooding, standard home insurance won’t be of much help.

Why Insurance for Flooding is Important
Insurance for flooding is designed to cover any losses directly caused by flooding. Buying insurance for floods is crucial for those who reside in areas prone to such disasters. Unlike home insurance, which may cover water damage from internal issues like burst pipes, flood insurance specifically covers damage from environmental flooding. Insurance for flooding is not generally included in standard home insurance policies, as it requires a separate purchase.

New Requirements for Citizens Insurance Policyholders
Citizens Insurance made a significant update for policyholders. The new changes went into effect on July 1, 2023. It’s now a requirement for anyone renewing their policy to have flood insurance if their personal residential policy includes wind coverage and if their house is located in a special flood hazard area. These changes are required to stay in compliance with Senate Bill 2-A, which was passed in December 2022 by the Florida legislature.

The required flood coverage must be equal to or greater than the existing Citizens’ Coverage A and Coverage C limits. These stipulations also apply to condominium owners. Tenants and cooperative unit owners need coverage that’s greater or equal to Coverage C limits. If you have any questions, reaching out to an insurance agency is a great way to learn more about these requirements. An insurance agent can discuss all of your options while finding a policy to best meet your needs.

Why It’s Wise to Have Both
Choosing between flood and home insurance isn’t an either-or situation. Both policies protect different aspects of your home. Carrying both types of insurance is also now a requirement for anyone with Citizen’s Property Insurance. Making sure you have both policies is key to staying in compliance with these rules. Purchasing insurance for flooding can also be beneficial in some circumstances.

Benefits of Flood Insurance
While many people think they’re covered under their standard home insurance, the reality is that flood damage is often excluded. Investing in an insurance policy for flooding protects your home and belongings from unforeseen natural disasters involving water. Flood insurance also gives you peace of mind, as you will know you won’t have to bear the heavy cost of replacing valuables out of pocket.

NFIP and Private Insurance for Floods
You can either go for a policy from the National Flood Insurance Program (NFIP) or opt for one from a private insurance carrier. The NFIP offers standardized policies, but these may have limitations on coverage amounts. Private insurance carriers often provide more flexible and customizable options. Required flood coverage limits for Citizen’s policyholders can be met through either the NFIP or a private carrier.

Policy Renewals and Documentation
Renewing your policy after July 1, 2023, will require some extra steps for Citizens Insurance policyholders. You’ll need to submit specific documents, including proof of flood insurance, that meet the required coverage limits. If you fail to comply, your policy won’t be renewed, leaving you exposed to multiple risks. It’s essential to work with your insurance agent to get all paperwork in order well before the renewal deadline.

Need Insurance for Flooding? Give Wellcovered Insurance a Call!
At Wellcovered Insurance, we are committed to helping you navigate the complexities of insurance. Our team can help you find the best policy, and we will make sure Citizen’s policyholders will stay in compliance with the recent changes to the law.

Our core values at Wellcovered Insurance are all about staying helpful, being in communication, taking action, defining any problems, and always seeking the best solutions available. We can also help you decide on any other insurance options, such as auto, RV, motorcycle, general liability insurance, and much more.

Contact Wellcovered Insurance to learn more about our insurance options!