How house insurance works
Jun 28th, 2013 @ 01:36 pm › editor
Despite which insurance company you have, most many go through the National Flood Insurance Program (NFIP) when dealing with flood cases. Even if your insurance company makes it seem like it’s providing you the money for flood damages directly, the fact is, it’s not. The NFIP gives money to your insurance company and your insurance company gives money to you for house raising and other flooding repairs.
Notice how we said “most insurance companies.” For an insurance company to go through the NFIP – a more reliable source of insurance – a community has to adopt a sound flood management system. Without such a system, members of the community will not qualify for insurance through the NFIP.
Take Oceanport, NJ, for instance – a New Jersey borough that was affected by Hurricane Sandy. Because Oceanport met federal regulations, it was classified as a community with a sound flood management system. FEMA would have arrived anyway, but, because principles were already set in place, the process was streamlined. Also, even though FEMA is associated with the NFIP, the NFIP
isn’t obligated to offer insurance help if a borough doesn’t meet standards.
Many Oceanport residents affected by Sandy will now be able to afford to have a house raising company in NJ fix their home. Also, people who weren’t affected but want to protect their home for future natural disasters will also be covered.
In addition to receiving money from your insurance provider through the NFIP, something called the Increased Cost Compliance (ICC) may provide you with even more money. To determine if you’re eligible for this, the following has to happen.
1.) A representative from your borough comes to access your house.
2.) Based on their review, they give your house a damage level rating.
3.) If your house is damaged at least 50.1%, you receive $30,000
This $30,000 is separate from the money you receive from your insurance company. The money you receive from your insurance company is to fix immediate problems. The $30,000 you receive from the ICC is for raising, demolishing or moving.