Who in Massachusetts Can Benefit from a Flood Policy’s Protections?
Many people are surprised at how many residents and businesses in Massachusetts may benefit from having a flood policy.
People who have property in high-risk areas could face devastating rebuilding costs if their property is flooded and they have no insurance in place, and there are many areas in the state that are deemed to be high-risk.
Those in low-risk areas still aren’t in risk-free areas, for there is no such designation given by the government. Instead, some areas have a low risk or unknown risk. Flood policies for these areas are usually extremely affordable, and they can provide protection against potentially devastating disasters even if those disasters are unlikely.
Do People Who Own Property in High-Risk Areas Legally Need a Flood Policy?
In places where floods are especially likely, property owners might be under an obligation to have a flood policy in place for their property. Sometimes laws require a flood policy in certain areas. Mortgages also may have a requirement that a property’s insured against floods if the property is in a high-risk area.
How Does the National Flood Insurance Program Work?
The National Flood Insurance Program is a federal subsidy for property owners who have buildings in high-risk areas. Only property owners in participating communities can purchase a policy through the program, but there are many Massachusetts communities that participate. For qualified property owners, this is usually the most affordable way to obtain a flood policy.
Property owners who want to learn more about this program and see whether they qualify can speak with a specialized insurance agent who’s familiar with flood policies. A specialized agent will be able to quickly find out whether a particular property qualifies for the program, and they can assist with procuring a policy through the program if a property does indeed qualify.