Types of Flood Insurance Plans: Which one is right for you?

Living in South Carolina, you’re lucky because you’re never too far from the beach or a river, lake or stream. Not only does that mean easy access to water-powered fun, but it also means that your home has a high likelihood of being at risk for flood damage. So you need flood insurance. There are several types of flood insurance available, and those of us here at Edwards Insurance Agency would be happy to help you figure out which type (or types) are right for you. Here’s a rundown of the different types of flood insurance you can choose from.

National Flood Insurance Program

The National Flood Insurance Program is the most common type of flood insurance in the United States. It is administered by the Federal Emergency Management Agency (FEMA) and offers coverage for both residential and commercial properties. NFIP policies provide building coverage for structural damage and contents coverage for personal belongings. These policies are available to homeowners, renters, and business owners in participating communities.

Preferred Risk Policy

A Preferred Risk Policy is a specialized flood insurance plan offered through the NFIP. It caters to homeowners residing in low- to moderate-risk flood zones. PRP policies provide affordable coverage options for those who are not required to carry flood insurance but still want protection against potential flood damage. These policies offer comprehensive coverage for both buildings and contents.

Excess Flood Insurance

Excess flood insurance, also known as supplemental flood insurance, is an additional policy that homeowners can purchase to supplement their existing NFIP coverage. These policies are designed to offer higher coverage limits beyond the maximum limits provided by the NFIP. Excess flood insurance is beneficial for homeowners with high-value properties or those seeking additional protection beyond the standard NFIP policy.

Private Flood Insurance

Private flood insurance policies provide an alternative to the NFIP coverage. FEMA does not administer or regulate these policies, allowing for more flexibility and customization. Private flood insurance plans may offer higher coverage limits, additional benefits, and broader coverage options compared to NFIP policies. However, it’s important to carefully review the terms and conditions of private policies, as they can vary significantly among insurance providers.

Condo and Renter’s Flood Insurance

Condo and renter’s flood insurance policies cater to individuals living in condominiums or renting homes or apartments. These policies provide coverage for personal belongings, as well as any improvements made to the rental unit, such as flooring or cabinetry. Condo and renter’s flood insurance plans offer tenants the peace of mind that their possessions are protected against flood damage, even if the landlord has insurance for the building structure.

What Type of Flood Insurance Do You Need?

We get it – choosing a type of flood insurance can be confusing! The flood insurance experts at Edwards Insurance Agency would be happy to answer all your questions and help you find flood coverage that fits your home or business, lifestyle, and budget.