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1. Franklin Homeowners Assurance Company
PremierFlood.com
How the National Flood Insurance Program Affects Your Flood
Insurance Rate
Flood insurance is an easily overlooked but very important insurance for homeowners and renters alike to
carry. Many people may be worried about the cost, but the National Flood Insurance Program (NFIP) is in
place to ensure, among other things, that flood insurance rates stay regulated. The NFIP was established in
1968 and is overseen by the Federal Emergency Management Agency (FEMA). The NFIP established
guidelines for participating communities to follow, it enforces these guidelines, and also created the Flood
Insurance Rate Map (FIRM).
As you look for flood insurance, keep in mind that it is the reputation and financial solidity of the company
that you should be shopping for rather than the insurance rate they offer. The rates will be the same no
matter which insurance company you decide to go with. This is because the NFIP sets the rates based on
your location on the FIRM. By taking the price out of the equation, you can focus on finding a company that
will provide you with accurate and reliable insurance and good customer service. Because the NFIP is so
crucial to regulating flood insurance, you will want to first find out if your community participates in the NFIP.
NFIP participation is handled on a local or community level because participation is contingent upon the
community?s adherence to certain flood management guidelines. However, some states do make
participation mandatory. So, as you begin looking into what kind of flood insurance rate you can get, you will
want to find out first if your area is enrolled in the NFIP. More likely than not, they will be, but your rates will
be much higher, and the insurance harder to find if you do not live in a participating locality. Almost any
community is eligible to join the NFIP, so if you find that your area does not participate, you can seek to
change this by gathering additional community support.
With a little luck, your home will be in a community that already participates in the NFIP. In this case, your
next step will be to check the FIRM. This will tell you how high the flood risk is for your home, and what your
flood insurance rate will be. It?s easy to assume that because you don?t live near a large body of water
your flood risk is minimal, but many other factors contribute to flood risk. If you live in a new development
where there isn?t a lot of soil to soak up moisture, or in an area where rapid snow melt occurs, you could
still be at considerable risk for flood damage. After referencing the FIRM, if you find that you are in a low or
moderate risk area, you may be able to purchase a Preferred Risk Policy which will likely give you a lower
insurance rate.
The NFIP has taken a lot of the legwork out of finding flood insurance by creating extensive regulations by
which insurance providers must abide, allowing you to stop thinking about who will give you the best
insurance rate, and instead focusing on who will provide the best service and information. It?s just up to you
to make sure your home is in a participating community and take advantage of what the NFIP has to offer.
Whatever your insurance rate, it will likely cost you much less than damage from a flood.
Document Tags: flood insurance, insurance premiums, insurance coverage
Franklin Homeowners Assurance http://www.premierflood.com/
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