Ensuring your home against flood damage is essential, but you may find yourself pondering which type of flood insurance to choose. What’s the difference between NFIP and a private flood policy? Contact us at Bonvenuto Financial Group LLC, in Uniontown, OH, for guidance on flood insurance.
Two Types of Flood Insurance
Until 2012, the NFIP, or the National Flood Insurance Program, was the only option available for flood insurance. The government established the NFIP to provide affordable flood policies to homeowners.
However, in 1983, the WYO, or Write Your Own, policies emerged. This allowed private companies to offer flood policies that the NFIP underwrites.
Differences Between Policies
Private flood insurance policies offer more flexibility and options than NFIP plans.
For instance, an NFIP plan provides up to $250,000 in dwelling coverage. Private policies can include $500,000 or more in dwelling coverage. Dwelling coverage pays to repair or rebuild your home if it is damaged.
An NFIP policy limits content coverage to $100,000. However, private policies can offer more coverage, with some offering up to $250,000 worth of coverage for contents, depending on the insurer.
This type of coverage takes care of your belongings, including furniture, jewelry, and other possessions.
Lastly, loss of use coverage isn’t included in NFIP policies, but some private policies include it. Loss of use coverage comes in handy if you are temporarily unable to live in your home due to flood damage.
Bonvenuto Financial Group LLC
If you have inquiries about flood insurance in Uniontown, OH, feel free to contact us at Bonvenuto Financial Group LLC. Our agents are ready to discuss your requirements and assist you in choosing the most suitable policy.
