TALLAHASSEE, Fla. – April 16, 2013 – Florida Insurance Commissioner Kevin McCarty encourages Floridians to prepare for the upcoming 2013 hurricane season by purchasing flood insurance now. Most flood insurance policies – with a few exceptions – don’t take effect for 30 days.
The National Flood Insurance Program (NFIP) administers the coverage rather than local insurers, and private policies – if available – generally cost significantly more. Homeowners’ policies generally cover water damage from wind and storms, but they don’t cover rising water in a flood, even though it’s the nation’s most common natural disaster.
McCarty cites another reason to buy flood insurance sooner rather than later: NFIP policy rates are set to rise on Oct. 1, 2013. McCarty calls the increase “significant.”
“Florida’s risk for severe weather is well-known and, even though a hurricane has not impacted our state in recent years, several tropical storms have caused significant flood damage to many Floridians,” says McCarty. “Regardless of the storm type, I strongly urge Floridians to prepare now and purchase flood insurance by May 1, as a typical flood insurance policy takes 30 days to become effective. This will ensure you are covered on June 1, the first day of hurricane season.”
Florida consumers can purchase flood insurance from NFIP for up to $250,000 for property damage and $100,000 for personal contents. Excess flood insurance can be purchased for homes valued at more than $250,000. NFIP coverage is also available for commercial structures at $500,000 for building coverage and $500,000 for contents coverage. Check with an insurance agent for more information about access to the NFIP.
In July 2012, the U.S. Congress passed the Flood Insurance Reform Act of 2012 extending the NFIP through Sept. 30, 2017. Key provisions of this legislation will be implemented over time and include raising premium rates to reflect the actual flood risk of the program, phasing out subsidies on properties with repetitive losses, allowing coverage availability for multifamily properties and minimum deductibles for flood claims, etc.
To learn more, visit the new Hurricane Resource website page hosted by the Florida Insurance Commission.
For more info on the National Flood Insurance Program, visit the federal website FloodSmart.gov.
© 2013 Florida Realtors®