NFIP vs Private Flood
What’s the difference between private flood insurance and the NFIP?
The National Flood Insurance Program (NFIP) is a federal program established in 1968. NFIP is managed by FEMA and offered to the public by a network of authorized insurance companies, as well as NFIP direct. Most recently, some private insurance companies have begun to offer "Private Flood Insurance" as an alternative to the NFIP flood policy.
Some of the primary differences and benefits of private flood insurance are:
Less Expensive: Private Flood Insurance can sometimes be less expensive that the NFIP price
Short Wait - If not for closing, as little as a 10 Day Waiting Period. A NFIP policy requires a 30 day waiting period.
Elevation Certificate - Some private flood carriers do not require it. NFIP policies may require it. ECs can be expensive. However, if you already have a EC, and it helps the price, you can use it to your benefit.
Building Coverage - Up to $4,000,000. The standard NFIP max is $250,000. *(For Replacement cost coverage to apply, dwelling value must be at least 80% of building value at time of loss).
Higher Contents Coverage - up to $500,000. NFIP max is $100,000.
Replacement Cost on Contents - In the event of a covered loss, your policy covers your personal property (up to the amount you selected for personal property coverage) with an adjustment for actual cash value (depreciation). If you would like your claim settled for the replacement cost of the items at the time of the loss, without depreciation, select this extra protection.
Basement Contents Coverage - With this coverage, you may be covered for damage to Basement Contents, often up to a low sublimit. However, something is better than nothing. NFIP only covers limited basement contents, such as wall fixtures, elevators, air conditioners, and washer/dryer.
Pool Repair and Refill Coverage - Have a pool? The standard policy doesn't cover the costs associated with pool repair and refill. You may want to select this coverage if you have a pool. The NFIP specifically excludes coverage for swimming pools.
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