General insurance Flood insurance; its benefits and importance

Phabbyfundz

Active member
Because of frequent flooding of the mississippi river during the 1960s and the rising cost of taxpayer funded disaster relief for flood victims, in 1968 congress created the National Flood Insurance Program (NFIP). It has three mandates:
— to provide residential and commercial insurance coverage for flood damage.
— to improve flood plain management.
— to develop maps of flood hazard zones.
While the comprehensive sections of an auto insurance policy covers flood damage to vehicles, there is coverage to flooding in standard home owners policy, rentals or commercial property insurance policy. It is available in a separate policy from the NFIP and from a few private insurers. Despite efforts to publicize this , many people exposed to the risks of flood still fail to purchase flood insurance.
The true importance of flood insurance policy can not be overemphasized and the its benefits to people living in flood prone areas.
 

Mandy96

Valued Contributor
Flood insurance is not a policy that can be obtained without the case calling for it. Trying to buy this plan, there must have been challenges like that causing problems at the area you live. Besides you should ask yourself a question like, do I have a property of my own in that particular location
 

Wisdom01

Valued Contributor
The challenge is that it's hard to predict fraud in a particular location because it could happen at any time ,as many vehicles have been damaged due to flood , so the premium to be paid might be very high so the insurance company would be able to cover the risk at interval ,flood is a natural disasters and it could happen at any time
 

btaliat

VIP Contributor
The location of business or even property will determine whether this type of insurance should be bought or not. If the business or the property is not situated near water then there may not be more reasons for buying of this type of insurance. So this won't be as a waste of money.
 

Chibson

VIP Contributor
Flood insurance is very necessary especially for those living in a place where flood usually ravage. There are numerous benefits it provides ranging from coverage to saving a lot of finance for the insurer. Like someone have stated, the location is very important to determine whether to venture into this kind of insurance or not.
 

Mataracy

VIP Contributor
Flooding insurance is very important and necessary especially during this raining seasons. It will really benefit those company that have their company built closely to the water side . Those that have fish ponds can equally take up this particular policy because it will really benefit them especially this period of raining season.
 

Good luck

Verified member
Flood is natural occurrence which happens when there is a large expanses of water.Or when there is heavy downpour.So I don't think such policy is available or should be done if it at all.If the property is insured then there should not be any need to be looking for flood insurance.
 

btaliat

VIP Contributor
The challenge is that it's hard to predict fraud in a particular location because it could happen at any time ,as many vehicles have been damaged due to flood , so the premium to be paid might be very high so the insurance company would be able to cover the risk at interval ,flood is a natural disasters and it could happen at any time
I don't think this type of insurance policy is the best to have for property especially vehicle. There is less probability of flood destroying vehicle. But for property like building, company and some other things. Because there is tendency of having these kind of properties destroy by natural disasters like flood.
 

Wisdom01

Valued Contributor
I don't think this type of insurance policy is the best to have for property especially vehicle. There is less probability of flood destroying vehicle. But for property like building, company and some other things. Because there is tendency of having these kind of properties destroy by natural disasters like flood.
It actually depends there are some people that lives in floody region and their vehicles are usually damaged by flood , so they rather choose to cover it against the risk than they keep on repairing the vehicles because of the bad roads and floods that could take place , so it depends too as it is important also
 

btaliat

VIP Contributor
It actually depends there are some people that lives in floody region and their vehicles are usually damaged by flood , so they rather choose to cover it against the risk than they keep on repairing the vehicles because of the bad roads and floods that could take place , so it depends too as it is important also
You are right. I am only speaking based on my own experience. Most people in my country that live where they usually have heavy rainfall which may allow the vehicle to be damaged by flood usually don't like going out with their car during the rainy seasons. But all the same, I got your point and thanks very much for the enlightenment.
 
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