Flood Insurance in New Jersey
Most homeowners think they’re protected from weather damage with homeowners insurance, but many people are surprised to find out that regular home insurance policies don’t cover floods. Blue Lion Insurance Advisors, LLC offers flood insurance policies to homeowners in our New Jersey service areas to cover them against the damage that other policies do not. We’re dedicated to helping our clients manage their risk with customized insurance policies. Learn more about flood insurance and its importance.
Why Is Flood Insurance Recommended?
Many people believe they don’t need flood insurance if they don’t live in an area with a lot of storms, rain, or a high risk of flooding. This isn’t accurate — floods can happen anywhere, and they are the most common and costly natural disaster in the United States. In fact, just one inch of floodwater can result in up to $25,000 in damage, and it won’t be covered by a typical homeowners insurance policy. A flood insurance policy is separate and can cover either the actual building, the contents of the building, or both. Depending on the policy you choose, flood insurance can cover:
- Structural damage to your property
- Repair of furnace or boiler, water heater, or central air-conditioning
- Electrical and plumbing system repair
- Furnishings and other possessions
- Clean-up of debris after a flood
Property owners without flood insurance must often deal with expensive repairs and renovations that they have not budgeted for, creating financial headaches. Obtaining a flood insurance policy is the best way to protect your investment and your family from these problems.
Flood Insurance Options
When choosing a flood insurance policy, you can generally go one of two ways. You can get your flood insurance through a Federal Emergency Management Agency (FEMA) program called the National Flood Insurance Program (NFIP) or through a private insurance company.
National Flood Insurance Program
The NFIP was created to offer flood insurance to home and business owners living in nearly 23,000 participating communities throughout the U.S. The NFIP also works within these communities to develop and enforce regulations that help mitigate the effects of flooding.
Having flood coverage through the NFIP helps property owners recover faster from floodwaters and protect their valuables. As of August 2019, 553 of the 566 municipalities in NJ participate in NFIP. NJ residents can get their flood insurance through their insurance company or NFIP Direct.
Private Flood Insurance
NFIP insurance isn’t always the best option for everyone because the more valuable your home and property are, the less likely NFIP policies are to cover their value. NFIP policies are capped at $250,000 in building coverage and $100,000 in contents coverage, so they may not be suitable for people whose property is worth more than average.
Private flood insurance policies are generally more flexible and cover more aspects than the standard NFIP policy, including dwelling coverage, contents coverage, and loss of use coverage. The offerings will differ depending on the insurance company you go through, so make sure to talk with your agent to decide on the best option for you.
Property owners usually aren’t required to purchase flood insurance unless their property is in a high-risk flood area and has a mortgage from a government-backed lender. However, it’s a great way to protect your belongings and have peace of mind that you’ll be covered if a flood ever happens.
At Blue Lion Insurance Advisors, LLC, we are not affiliated with any particular insurance company, so we can find every client a policy that is cost-effective while meeting their needs.
Contact Us Today for Comprehensive Flood Insurance
Whether you live in a high-risk flood area or not, flood insurance is recommended to keep your property and belongings protected. Blue Lion Insurance Advisors, LLC offers a broad selection of both personal and business insurance policies, including flood insurance, to property owners throughout NJ. Our comprehensive knowledge of each type of insurance allows us to offer you a customized selection of policies to choose from. Contact us today to start planning your complete insurance portfolio.