Flood Insurance

UPDATE: Yes, the National Flood Insurance program has been re-authorized by Congress (thru 9/31/10).
Call our office for full details of the current situation. Or go to www.floodsmart.gov then at the top of the home page there is a link to click for up to date info on the authorization process.
Flooding season is always here and;
There is a 30-day waiting period before coverage begins (unless mandated for a loan closing).
Coverage is inexpensive.
SW FL communities participate in the NFIP which makes all property owner eligible for coverage. All communities in Collier and Lee county participate. These include; Bonita Springs, Cape Coral, Estero, Ft. Myers and Naples.
Loss payments can be received for flood-related losses for over-land flooding—even if no disaster was declared.
Flood insurance benefits do not have to be paid back (as is the case with disaster-related assistance loans).
30% of all flood clams are paid on insured property not classified to be in a high risk flood zone.
Coverage includes cleanup expense, and repair or replacement of items such as furnaces, water heaters, washers, dryers, air conditioners, freezers, utility connections, and pumps.
A partial payment can be requested immediately after the flood, which can help with an even faster recovery.
Buying flood insurance is the best thing a property owner can do to protect their home and business and their family's financial security from a flood.

1. A new policy (in connection with making, increasing, extending, or renewing a loan, whether conventional or otherwise)--Flood insurance, which is initially purchased in connection with the making, increasing, extending, or renewal of a loan, to be effective at the time of loan closing, provided that the policy is applied for and the premium is paid at the time of or prior to the loan closing. This rule applies regardless of flood zone classification.

2. A new policy -- the 30-day waiting period does not apply when flood insurance is required as a result of a lender determining that a loan on a building in a Special Flood Hazard Area that does not have flood insurance coverage should be protected by flood insurance. The coverage is effective upon the completion of an application and payment of premium.

3. A new policy when the initial purchase is in connection with the revision or updating of a Flood Hazard Boundary Map by NFIP. This exception must occur during the 13 months beginning on the effective date of the map revision. This rule only applies where the Flood Hazard Boundary Map or Flood Insurance Rate Map is revised to show the building to be in a Special Flood Hazard Area when it had not been in an SFHA.

4. A new policy by a condominium association purchasing a Residential Condominium Building Association Policy (RCBAP), the 30-day waiting period does not apply if the condominium association is required to obtain flood insurance as part of the security for a loan under the name of the condominium association. The coverage is effective upon completion of an application and payment of premium..

5. A new policy, a 30-day waiting period does not apply when an insured decides to rewrite the existing policy at the time of renewal from Standard to a Preferred Risk Policy (PRP), provided that the selected coverage limit amount is not higher than the next highest amount above that carried on the Standard policy using the highest of building and contents coverage.