The Damages That Are Covered and Not Covered by NFIP

The National Flood Insurance Program (NFIP) was established in 1968 with the primary aim of reducing the financial burden related to floods. As an individual who is affected by a flood, you can get compensation by documenting your flood damages, applying to the right channels, and getting the help that you seek. NFIP provides essential protection for homeowners, renters, and businesses against flood-related damages.

Overview of NFIP and Its Coverage

There are different types of National Flood Insurance Program (NFIP),like Standard Flood Insurance Policy, which covers most residential and commercial properties.

Preferred Risk Policy is another type of NFIP that offers lower premiums for properties in low-risk areas, while the grandfather rule allows policyholders to maintain previous flood zone ratings.

When faced with flood damages, you have to file a notice of loss that covers the damage description, evidence, and your contact details.

Thereafter, the insurer will assign an adjuster to your case, who will then assess the damages that you claim. The adjuster will report their findings and make their recommendations, which affect what will be presented to you as a settlement offer.

The flood insurance through the NFIP is available for both residential and commercial properties. However, certain damages are covered and not covered by NFIP.

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Damages covered by NFIP

The National Flood Insurance Program (NFIP) covers:

1. Direct property damage resulting from floods in personal properties and buildings.
2. NFIP covers building elements like
   1. Electrical and plumbing systems
   2. Walls
   3. Foundations
   4. Floors
   5. Appliances
   6. Permanently installed fixtures
   7. HVAC equipment
3. Flooding damages to personal properties like clothing, furniture, kitchen appliances, electronic devices, and other personal belongings.
4. Temporary relocation costs of individuals due to flood damage.

Read: The Property Damage a Car Accident Victim Will Sustain

Damages Not Covered by NFIP

There are many damages that are not covered by NFIP. They are listed below.

1. Any damage that occurs that is not flood-related. The reason is that there are instances where a property experiences water damage because of an appliance malfunction or burst pipe. NFIP does not consider it a flood and hence will not cover it.
2. Loss of income is not covered by NFIP even if your place of business was flooded, which disrupted or interrupted your business. It is often wise for business owners to have business interruption coverage that can cover this loss of income risk.
3. Any damages to land, soil, or landscaping elements such as trees, plants, and lawns are not covered by NFIP because flooding insurance does not provide for them.
4. Sadly, NFIP does not cover vehicles damaged by floodwater.
5. If a property is of high value, like arts, jewelry, and antiques, flood insurance does not cover it except in situations where they were specifically listed.

Tips for Those Needing NFIP Coverage

If you find yourself in a situation where you require NFIP coverage, here are a few tips that can increase your chances of a favorable outcome.

• Ensure that the damage claims to NFIP are done on time and accurately.
• Ensure that you have the necessary evidence that will help your arguments.
• Hire the services of a trained attorney who is aware of the policies and will help you get the best offer.
• Do not accept the first offer.

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