A hurricane is forming in the Atlantic, and the newest forecast predicts it will hit your state. Is it too late for flood insurance?
Most likely, the answer is “yes.” Depending on where you get your flood insurance, there is often a 10- to 30-day waiting time between when you purchase the policy and when the coverage begins. However, there are a few instances in which you can obtain immediate flood insurance.
Federal flood insurance waiting period
When you acquire an insurance under the National Flood Insurance Program, coverage typically begins 30 days after the purchase date. If flooding occurs during the blackout, your coverage will not cover repairs to your home or goods.
The following exceptions apply to the 30-day NFIP waiting period, according to the Federal Emergency Management Agency.
Mortgages
There is no waiting period if you get flood insurance along with a home loan. This guideline applies when applying for a new mortgage as well as increasing, extending, or renewing your existing loan. (Mortgage lenders typically require flood insurance for homeowners in high-risk flood zones.)
Renewing existing flood insurance
If you already have flood insurance and opt to update your coverage at renewal time, the new limits will take effect immediately after your previous policy expires, without any waiting period.
Remapping
If your residence was not in one of FEMA’s Special Flood Hazard Areas when you originally moved in, you most likely did not get flood insurance. But what if FEMA updates its maps and your home is suddenly in a high-risk zone? You can obtain coverage with a one-day waiting time if you purchase within 13 months of the remapping.
Post-wildfire
After a wildfire, the risk of flooding increases because burned vegetation prevents the earth from absorbing rainfall. If your home is flooded on burned federal land and you purchase an NFIP policy within 60 days of the fire being extinguished, you may not have to wait for coverage.
Private flood insurance waiting period
If you purchase private flood insurance, your waiting period may be shorter, ranging from 10 to 15 days, depending on the business. However, as with the NFIP, there may be certain exclusions. For example, if you purchase insurance during the mortgage closing process, there may be no waiting time.
If you purchase private flood insurance while your NFIP policy is about to renew, you may be allowed to skip the waiting period.
Private flood insurance providers do not cover all states or communities, so consult an independent insurance professional about your possibilities.
Last-minute flood insurance for your car
Flood insurance doesn’t cover your car. If your car is damaged by flooding, comprehensive car insurance will pay for the repairs, minus your deductible. Assume you have a $250 deductible and your car requires $1,000 worth of flood repairs. Your insurance provider will pay $750, while you will be responsible for the remainder.
It is important to note that your policy may not have full coverage because states do not require it. If you simply have the state-mandated minimum insurance on your car, you are not covered for flood damage. If you have a car loan, your lender presumably required you to have comprehensive coverage when you purchased the vehicle.
Not sure what coverage you have? Check the declarations section of your auto policy or contact your insurer.
If your neighborhood is under a storm watch, car insurance providers are unlikely to sell additional policy. If this hasn’t happened yet, talk to your insurer about adding comprehensive coverage to your insurance. There will be no waiting period as long as you are eligible for the coverage.
