STANDARD HOMEOWNERS INSURANCE POLICIES DO NOT COVER LOSSES DUE TO FLOODS.
The City of Lake Worth Beach is a participant in the National Flood Insurance Program (NFIP), which makes it possible for Lake Worth Beach property owners to obtain federally backed flood insurance. This insurance is available to any owner of insurable property (a building or its contents) in the City of Lake Worth Beach. Tenants may also insure their personal property against flood loss.
The actual cost will vary depending upon the amount of coverage and the degree of flood hazard. We urge persons who live or own property in flood hazard areas to purchase flood insurance to protect themselves from losses due to flooding. This insurance is required in certain instances, such as the purchase of a home with a federally backed mortgage.
Top Ten Facts….
Every customer needs to know about the National Flood Insurance Program (NFIP)
1. Everyone lives in a flood zone. You don’t need to live near water to be in a flood zone. Floods are caused by storms, hurricanes and water backup due to inadequate or overloaded drainage systems, dam or levee failure.
2. Flood damage is not covered by homeowner’s policies. You can protect your home, business and belongings with flood insurance from the national Flood Insurance Program. You can insure your home with flood insurance for up to $250,000 for the building and $100,000 for its contents.
3. You can buy flood insurance no matter what your flood risk. It doesn’t matter whether flood risk is high or low. You can buy flood insurance as long as your community participates in the National Flood insurance Program. And, it’s a good idea to buy even in low risk areas: between 20 and 25 percent of all flood insurance claims come from low risk areas.
4. The low-cost Preferred Risk Policy is ideal for homes and businesses in low- to moderate-risk areas. Homeowners can insure buildings and contents for as little as $119 per year. Business owners can insure building and contents for as little as $550 per year. Residential renters can insure contents for as little as $39 per year.
5. Flood insurance is affordable. The average flood insurance policy costs a little more than $500 per year for about $100,000 of coverage. In comparison, a $50,000 disaster home loan can cost you about $240 a month at 4 percent interest over 20 years.
6. Flood insurance is easy to get. You can buy NFIP flood insurance from private insurance companies and agents. You may be able to purchase flood insurance with a credit card.
7. Contents coverage is separate, so renters can insure their belongings too. Up to $100,000 contents coverage is available for homeowners and renters. Whether you rent or own your home or business, make sure to ask your insurance agent about content coverage. It’s not automatically included with building coverage (expect under Preferred Risk policy).
8. Up to a total of $1 million of flood coverage is available for non-residential buildings and contents. Up to $500,000 of coverage is available for non-residential buildings. Up to $500,000 of coverage is available for the contents of non-residential buildings.
9. There is usually a 30 day waiting period before the coverage goes into effect. Plan ahead so you’re not caught without flood insurance when a flood threatens your home or business.
10. Federal disaster assistance is not the answer. Federal disaster assistance is only available if the President declares a disaster. Flood insurance pays even if a disaster is not declared. It’s just good sense.
Residents need to be advised of the following:
- Premiums for flood insurance policy holders provide the financial recovery for insured flood losses – not tax funds. With insurance proceeds, policyholders can repair or rebuild damaged homes, clear away debris, and replace business inventories and personal belongings.
- Flood insurance claims are usually handled quickly, helping flood victims rebuild homes and businesses. Flood insurance claims are paid whether or not a federal disaster is declared.
By following some simple precautions, you can rest easier if a storm or flood condition threatens our area. Contact your insurance carriers concerning availability of flood insurance rates and coverage for your property