There is risk in every aspect of life. You need an insurance policy to ensure that you don’t incur a loss because of it.

For those who are based in Miami, flooding is one risk that requires the coverage of an insurance policy.

However, contrary to what most believe, floods aren’t covered by a regular homeowner’s insurance policy. You need a separate policy to obtain that financial security cover you would need in such times. You could seek a flood insurance quote in Miami from the leading insurance companies based near you.

Flood Risk Zones
There are certain areas within the state of Florida, Miami included, which are designated by a code according to the flood risk they bear. So, if you live in an area that is designated as high-risk, you may have to pay a higher insurance premium than those who live in low-risk areas.

You can refer to Miami-Dade County’s flood map to understand the precise zone you are located in.

Options for Flood Insurance

You can buy flood insurance in Miami from:

1. National Flood Insurance Program (NFIP): This insurance program is backed by the Federal Emergency Management Agency (FEMA), a government agency. NFIP was created in 1968 and currently is the only federal program that you need to control financial repercussions that are caused by a flooding event.

Features of NFIP include:
● Coverage of up to $250,000 on home damage and up to $100,000 on item damage
● Comes into effect after 30 days from the date of policy issuance
Insurance coverage is fixed and no changes can be made to covered items
● Areas outside the house are not covered under the policy
● Most widely followed plan to date in the entire area

2. Private Flood Insurance: You can buy private insurance from any of the numerous private insurance companies that currently serve the area. You must, however, ensure to learn a few things about them first, such as:

● Their years of service
● Their terms and conditions
● Their financial position
● Their past performance
● Public opinion about them

Learning the above aspects can tell a lot about the kind of insurance you are buying, and how much trouble you may need to face when cashing in their policy.

Features of private insurance policies include:

● Different coverage caps depending on the company
● Shorter kick-in period for policy coverage from the date of issuance
● Flexible insurance coverage with the option to include and exclude certain items
● Areas outside the house could be covered by some insurers
● Shorter period to receive policy benefits in hand

Policy Changes Coming Soon

The risk of floods happening in different areas of Florida has risen exponentially over the past few years. This has led the insurance companies, federal and private, to increase the insurance premiums steely for new policy buyers. The template for both is the federal NFIP, so whenever its premium will rise, expect private insurers to raise their premiums too.

The changes for policy renewals may not be that exponential, for now. So, if you don’t own a flood insurance policy already, you must act now.

Why Must You Buy Flood Insurance
Flood damages are more severe than you can imagine. A single inch of flood can lead to losses exceeding thousands of dollars. Any higher water level will put you in a severe financial crunch. In comparison, you can simply purchase a flood insurance policy for a few hundred dollars and stay secure from any flood risk for an entire year! You can also ask for any ongoing discounts and offers to get even more out of your insurance policy.

Call your nearest insurance firm for the best flood insurance quote in Miami today.

Author's Bio: 

The Insurance Guy, Inc. is an independent insurance agency serving all of Florida. Being an independent agent means we work with a wide variety of insurance companies in order to provide you More Choices, Better Rates