Florida, USA- The office of Kevin McCarty, the current state Insurance Commissioner, has released a news alerting the policyholders and residents of Florida about the increased rates of the flood insurance. As said by spokeswoman Susan Hendrick of the Federal Emergency Management Agency, an average of 9% has been increased in the flood insurance premiums nationwide. These rates increase exclude some fees and surcharges. According to McCarty, it is very important that all the residents of the state acquire a Florida flood insurance policy for their property. McCarty added that around 1.8 million out of the 5.1 million policies of the National Flood Insurance Program or NFIP are in Florida.
Based on the data provided by Federal Emergency Management Agency or FEMA, flooding is the top natural disaster that usually strikes the entire nation. Since most of the lands in Florida are located nearby the sea level, the state is very prone to flooding situations. The Florida flood insurance quotes will provide the needed coverage which is typically not covered by other types of policies. This coverage includes loss of contents as well as building damages resulting from flood-related erosion, flooding, and flood-caused mudslides.
During the application, the home of the soon-to-be policyholder will be visited and examined by the representative of the insuring company. This gives the company a clearer picture of the entire vicinity and this also allows them to determine the possible risk of flooding. Those homeowners whose houses are located in the flood-prone areas will have to pay a higher premium as compared to those whose houses are situated in elevated lands.
Those homeowners who can not afford to get a Florida flood insurance policy for their home from regular insurance companies can seek help from NFIP. The NFIP was specifically established by the United States government to make flood insurance available to those people without flood insurance policy. Both residents living in elevated areas and flood-prone areas can benefit from the program.
There are still a good number of American insurers that still do not offer or provide flood insurance. The reason behind this is because of the prohibitive costs of a flood insurance. American insurers could not be able to cover the risk over a remarkably wide population and they can't as well be able to sacrifice and risk their company's balance sheet in cases when a lot of policy holders get their claims at the same time.