What you need to Know About Flood Insurance in Maryland
We experience different types of disasters, but floods are one of the most common and most damaging. This calamity can affect any person in the country. In recent years, the spate of floods has caused significant damage in homes and entire communities. While there’s nothing we can do to prevent floods from happening, buying flood insurance for your house can help tremendously.
The National Flood Insurance Program (NFIP) in Maryland defines a flood as a general and temporary condition. However, it can lead to loss of life or damaged property due to water or mudflow. This article will guide you and help you understand the many benefits of getting flood insurance Maryland to protect your homes.
How does Flood Insurance in Maryland Work?
Maryland is a mid-Atlantic state in the United States. It is well-known for the beauty of its natural resources such as beaches. However, despite its advancements, it is prone to flood. During heavy rains, flash floods come and cause flood damage to homes and establishments. The effect of prolonged steady rain is general flooding. Due to excessive rainfall, creeks and the riverbanks overflow and eventually reach residential areas.
Under the National Flood Insurance Program(NFIP), the standard flood insurance policy directly pays for any damage to your property or any replacement and the actual cash value (ACV) of the damages. The NFIP insures your house for up to $250,000 and $100,000 for your home’s content.
Your personal belongings and your house come with separate deductibles. You can choose your deductibles, and the higher you deductibles, the lower you pay in terms of premiums coverage. However, there are limits that have been set.
- You cannot increase your deductibles if you have mortgages.
- You cannot use the flood insurance immediately upon signing up, you need to wait for thirty days.
Flood Insurance Coverage
The coverage of flood insurance focuses on losses caused by flood or flood-related erosion. It can be due to prolonged or heavy rain, snowmelt, faulty drainage system, coastal storm surges, etc.
The insurance company will provide you with services to protect your home and reimburse the cost of all the damages caused by the flood. If you have questions, you can visit the NFIP or the FEMA flood insurance guide to understand the details on how to claim, the cost, and the coverage of the insurance.
- Homeowner’s Structure
The NFIP in Maryland offers you eligibility of up to $250,000 flood insurance coverage. It includes the damage to your furnace, air conditioner, water heater, and floor furnaces. Your insurer will also help remove the debris and clean up. But, the coverage for the crawlspaces, basement, and ground enclosure is limited. You can ask your insurance agent about the risk in this matter and what are the possible inclusions to your flood insurance claims.
- Homeowners Content
The National Flood Insurance Program does not entirely cover all your personal belongings, but you are entitled to $100,00 insurance. It includes your clothes, washer, and dryer, television and furniture, and other personal belongings.
- Business Owners
The Building Property Policy Form in Maryland does not cover flood damage related to your personal business property. Still, there is $500,00 available coverage, and you can add it to your premium plan.
The cost of buying insurance for floods depends on how high the risk your home is. If your home is located in a low-risk area, you will probably pay lower fees compared to those in high-risk areas. According to the Federal Emergency Management Agency (FEMA), premium homeowners’ flood insurance costs $500 and $48 a month. However, your premium varies on your location and flood zone, the type and amount of coverage you needed, your risk of loss in your area, and your preferred deductible amount. There is also private insurance for flooding, and the licensed insurance agents sell them.
For those in higher-risk areas (Zones V and A), the flood insurance cost depends on your home’s construction, size, location, and your deductible. According to FEMA, the standard flood policy costs about $700 annually but can vary greatly, depending on your home’s elevation.
The water surface elevation for high-risk zones results in a 1% chance of exceeding the level of flood every year, according to Base Flood Elevation (BFE). To reduce your flood insurance cost, the key is to increase your home’s elevation. You can save up to $90,000 in ten years if you increase the BSE by three feet. Homeowners’ insurance and grants will be more affordable if you follow this.
On the other hand, increasing your deductibles can lower the cost of your insurance in Maryland. The minimum deductible for your flood insurance is $1000 while the maximum is $10,000. By increasing your deductibles, you can save up to 40% on your premiums.
You are eligible to purchase flood insurance whether you are a homeowner, a renter, a condo owner, and business owner. The National Flood Insurance can guide you and provide you affordable rates to reduce the risk of flood and flood damage.
The National Flood Insurance offers a flood locator agent in Maryland. Your agent will explain everything about the flood insurance policy that they offer, and how to make flood insurance claims. You can also get more information and application forms from NFIP or FEMA.
The private insurance can also supplement what NFIP policy may lack, and they provide complete house coverage, outdoor property, swimming pools, detached structures, and basements.
The Homeowners Insurance provided by the private flood insurance policies covers up to $500,000 to $5 million. However, before you avail, make sure that you compare the policies to get and match it to your home and possessions value.
- Property Protection
- Safety of your Loved Ones
- Increase your Home’s Value
- Flexible Property Repair and Replacement
- Give you Peace of Mind
No one can predict what the future holds. What you need to do is to prepare for all scenarios, especially natural calamities. Even if you are living in a low-risk area in Maryland, purchasing insurance for flood in Maryland is always a wise decision.
You can also contact your insurer about your existing insurance policy and ask for a new insurance quote for better coverage and protection of your assets and investments.
Ready to Start?
Our Maryland Flood Insurance agents are ready to for your guidance.