Did you know that flooding is the most common type of natural disaster worldwide – around 40% of all natural disasters.
A lot of people think that their homeowner’s insurance policy will cover them in the event of a flood, but this is often not the case.
Most people are unaware that their homeowner’s insurance policy likely does not cover them for floods. This can leave you financially responsible for damages in the event of a flood.
But don’t worry. Keep reading to learn exactly what private flood insurance is and the top 5 undeniable benefits of private flood insurance.
What Is Private Flood Insurance?
Private flood insurance is a policy that helps to protect your home or business from flood damage. It is not backed by the National Flood Insurance Program (NFIP), and therefore, is not subject to the same rules and regulations.
How Is Private Flood Insurance Different from Traditional Flood Insurance?
When it comes to flood insurance, there are two main options: private insurance and traditional flood insurance through the National Flood Insurance Program (NFIP). The main difference between the two is that private insurance is not backed by the federal government.
This means that it does not have to follow the same rules and regulations as the NFIP, which can make it more flexible and customizable to your needs.
For example, private insurers can offer different coverage limits and deductibles, as well as additional riders for things like mudslides and sewage backup. However, this flexibility comes at a price; private flood insurance is typically much more expensive than NFIP coverage.
As a result, it’s important to weigh your options carefully before deciding which type of flood insurance is right for you.
Benefits of Private Flood Insurance
If you’re on the fence about whether or not to purchase private flood insurance, consider the benefits. These benefits include:
1. You’re in Control
Floods are one of the most destructive natural disasters, capable of causing billions of dollars in damage in just a few hours. And while government-sponsored flood insurance is available, it often doesn’t provide enough coverage to fully protect your home and belongings.
That’s where private flood insurance comes in. By definition, private flood insurance is any policy that is not backed by the National Flood Insurance Program.
As a result, private insurers are able to offer more flexible coverage options. And because you’re in control of your coverage, you can tailor your policy to fit your specific needs and budget. In the event of a flood, having the right insurance coverage can make all the difference.
2. Greater Flexibility
While a traditional flood insurance policy can be a good option for some homeowners, private flood insurance policies offer greater flexibility. For example, you may be able to adjust your deductible or coverage limits to better suit your needs.
You may also have the ability to choose which types of water damage are covered by your policy. In addition, private insurers often offer a wider range of discounts than the National Flood Insurance Program, making it easier to save on your premium.
As a result, if you’re looking for more control over your flood coverage, a private flood insurance policy may be the best option for you.
3. Enhanced Coverage
Private flood insurance policies often provide enhanced coverage that goes above and beyond what’s offered by traditional policies. This can include things like replacement cost coverage or extended dwelling coverage.
For example, replacement cost coverage can help to cover the cost of rebuilding your home if it’s damaged by a flood, while extended dwelling coverage can help to pay for temporary housing expenses.
As a result, private commercial flood insurance can be an important way to protect your finances in the event of a flood.
4. Faster Claims Payment
Speed is vital, especially when it comes to processing and paying claims. Private insurers usually approve claims faster and get the money to their policyholders sooner.
If you have a homeowners private insurance policy, you’ll get the money you need to repair or replace your home much sooner than if you were relying on a government-backed program.
And in many cases, that speed can make all the difference. If your home is badly damaged by a natural disaster, for example, you’ll want to get it repaired as quickly as possible to avoid further damage.
With private insurance, you can typically expect to receive your claim payout within a few weeks. With a government-backed program, however, the process can often take months.
5. Better Customer Service
Filing an insurance claim can be a daunting task, especially if you’re not familiar with the process. Insurance adjuster companies typically offer better customer service and help you from start to finish with the claims process in Pennsylvania.
Private insurers typically have a wider network of providers, so you’ll have more options when it comes to choosing a doctor or hospital. Private insurers are for-profit companies, so they want to keep their customers happy.
That’s not always the case with government-backed programs. These may be more concerned with saving money than providing good customer service. So if you’re looking for the best possible experience, you’re likely to find it with a private insurer.
Learn More Benefits of Private Flood Insurance Companies
If you’re still on the fence about the private flood insurance requirements, hopefully, this article has helped to change your mind. The benefits of private flood insurance are undeniable.
As we see more and more natural disasters occurring each year, it’s important to have a policy in place that will protect your family and your home.
Check out our blog for more information on private flood insurance policies and private flood insurance cost!