Flood insurance is an essential part of a full protection program for your home, but many first-time home buyers are surprised to discover it is a separate policy from homeowners insurance. As in other states that are susceptible to flooding dangers, New Jersey flood insurance brokers and agents can issue policies under the National Flood Protection Program, or NFIP. New Jersey is also now one of several states to be able to offer private coverage to certain residents as well.
National flood insurance is divided into two parts. NFIP allows for up to $250,000 for loss of structure. Business structures can be covered for up to $500,000. Residents can get coverage up to $100,000 for loss of personal property. The same amount is available for renters to cover loss of contents. The federal program benefits do not cover expenses that arise from having ones life interrupted, such as alternative housing arrangements or meals.
Additional Private Coverage
Some homeowners require more from their New Jersey flood insurance. Private insurance with extended coverage may be available for more expensive properties. High-value properties benefit from a comprehensive disaster plan that allows for adequate replacement coverage of structure and contents in the event of a catastrophic flood. An informed agent has the information to help assess your homes flood risk and choose the right amount of coverage.