Things You Need To Know About The Private Flood Insurance CA Underwriters Offer

By Shirley Howard


California homeowners who live in areas where there is the possibility, or probability of flooding, know how much devastation it can cause. Some of these same homeowners are under the mistaken impression that their homeowner's insurance will cover the damage. They couldn't be more wrong. Without the protection of the FEMA or private flood insurance CA underwriters provide, homeowners are out of luck when it comes to getting reimbursed for the costs of repairing or replacing their residences.

During the Obama years, a number of laws were enacted that attempted to curtail rising prices, regulate government policies, and allow protections from flooding by introducing independent underwriting. The commercial agencies that resulted are extremely competitive and offer the exact coverage FEMA plans offer. They go so far as to share claims adjusters with the government agency.

This protection is not guaranteed to all homeowners. It is not open to residents throughout the country, although more than half the country is eligible. The types of buildings the policies cover include residences with one to four units, and structures that are not for residential use. Individuals don't have to be homeowners to qualify. Renters can purchase the protection for the contents of their homes.

Mobile home and condominium owners cannot get the coverage, nor can those who live in the coastal barrier resources system. Any property that has been flooded in the last five years is ineligible. Property that is still damaged from previous flooding is not a candidate either. If the government has deemed a property a severe repetitive loss, the company will not insure it. Those in violation of state regulations pertaining to floodplain management are ineligible.

Reimbursements for flooding are limited. The owner of a residential structure can only expect to receive five hundred thousand dollars for repairs and replacement costs. They will be able to claim twenty-five hundred thousand for content compensation. Owners of commercial structures have a limit of five hundred thousand dollars for content replacement costs.

Many applicants are interested to know how long it takes for a policy to become active. Underwriters tell them that it depends. If the applicant is purchasing a home, and a federally regulated lender requires a policy be in place, there is no waiting period. There is not a wait time if a homeowner decides to change companies insuring their property, if the current policy is still in effect, and the company they are moving from is part of an approved network.

Prospective homeowners can reduce their policy costs substantially by purchasing property that is elevated. Even though may be in a low lying area or in close proximity to a large body of water, it much more likely to survive a flooding event than its neighbors located at a lower elevation.

Although they understand the dangers, many homeowners choose to live in areas where flooding is common. Many refuse to relocate no matter how many times the water rises. For those who choose this lifestyle, protection policies are not only necessary but crucial.




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