In the past decade, FEMA has declared over a half dozen major disaster declarations in New Jersey due to flooding. In 2012, when Hurricane Sandy wreaked havoc throughout the state, it became the second-costliest hurricane in United States history. Clearly it is not only coastal areas that may be vulnerable to flood damage. Homeowners in the market for Princeton home insurance benefit from knowing what the options are for protection against losses due to flooding.
National Flood Insurance Program
NFIP is a government program that offers flood insurance to homeowners in flood-prone areas of the country. It pays out up to $250,000 for structure and property, with enhancements up to $100,000 for the contents of a home. For many homeowners, the basic coverage that NFIP provides would prove to be insufficient to rebuild or repair a house destroyed by flooding.
Private and Excess Flood Insurance
Basic homeowners’ policies do not include provisions for flooding. While NFIP may be a good solution for many, others may want to purchase private flood insurance, or add excess flood onto their Princeton home insurance. Excess flood works to fill the gap between basic coverage and the true replacement value of your home and belongings. Plus, it may include compensation for necessary expenses such as alternate living arrangements and meals during post-flood reconstruction. It is a good idea to discuss your homeowners’ and flood insurance with a qualified agent to make certain you have the coverage you need.