As your closing partner, Two Rivers Title offers flood insurance through our partner company, Two Rivers National Insurance Agency (TRNIA)
Flood insurance is an important and often necessary consideration that can help you on the road to recovery in the event that rising water causes extensive damage to your home, belongings or business. If you are in an area with a high risk of flooding, you will generally be required to have some form of flood insurance policy. However, just because you may not be situated in a high risk flood zone doesn’t mean there is no chance that flooding may cause significant damage to your home or property.
What Constitutes Flooding?
A flood is any overflow of water that covers land that is normally dry, including the overflow of inland or tidal bodies of water, storm surges and mud flow. Floods are among the most common and costly natural disasters in the United States and are responsible for millions of dollars worth of damage every year. It is important to note that most homeowners insurance policies do not normally include coverage for flood damage but instead require separate coverage.
Types of Flood Insurance
Homeowners and business owners have relatively similar flood insurance options available to them. The National Flood Insurance Program (NFIP) has set limits on policy coverage, however additional limits can be found on the private market. Flood insurance is divided into two different policies:
- Building - This policy provides coverage for the building in question, as well as many of the building’s permanent installations, like plumbing, heating and electrical systems or built in appliances.
- Contents - This policy provides coverage for the contents of the building, including personal belongings.
FEMA, the organization that runs the NFIP, has a detailed list of what is generally protected under which kind of coverage.
Homeowners can purchase $250,000 in building coverage and $100,000 in contents coverage. Business owners have the option to purchase up to $500,000 in building coverage and $500,000 to protect contents. Each policy has it own deductible and there is a 30 day wait period when purchasing a new policy, though there are exceptions to this waiting period that you should discuss with your insurance agent.
New Jersey Flood Insurance
Flood insurance will only pay to replace lost items and will account for depreciation. This means that flood insurance is not a guaranteed replacement cost policy or a valued policy. It is vital to know what your risk of flooding is. Consulting FEMA flood maps or surveyors can help us calculate your premium and whether you are eligible for a lower cost policy if you are not in a high risk area.
Learn More About Flood Insurance
Everyone in the county is at risk of a potentially devastating flood, so it is important to protect your home from an unforeseen disaster. We offer flood insurance through our partner company, Two Rivers National Insurance Agency (TRNIA). Contact Aaron Levine, COO of TRNIA to discuss creating a custom flood insurance policy that is right for you.