On June 2nd, Tower Hill Insurance announced their much anticipated standalone flood insurance policy. Before this announcement most homeowners in Florida only had the choice of buying flood insurance from the National Flood Insurance Program. The NFIP policy has several limitations that homeowners should be aware of.
Limitations
Coverage Amounts -The maximum coverage allowed from the NFIP is $250,000 for the building and $100,000 contents. Tower Hill’s new Flood Insurance Program will write building limits up to $5,000,000 and contents limits up to $2,500,000. This will allow Florida home owners that own a home over $250,000 to be able to insure the full value of their home from the risk of flood.
Loss Settlement -If you have contents coverage on your NFIP policy your claim for your personal property will be settled on a ACV (actual cash value) basis or a depreciated amount. Private flood insurance from Tower Hill allows you to purchase “Personal Property Replacement Cost” which would value on your personal property on a replacement valuation instead of ACV.
Deductibles -Under the NFIP policy home owners are subject to two deductibles; one for the building and one for contents. The new Tower Hill flood policy has only one deductible. Tower Hill’s deductible options range from to $1,000 to $50,000.
Living Expenses -Loss of use of a property is NOT covered under the NFIP policy. Tower Hill’s flood insurance policy includes limits up to $5,000 and up to $10,000 with their Flood Plus endorsement.
Waiting Period -If you are not required by your bank to carry flood insurance the soonest you can buy flood insurance is 30 days from when you ask your agent to bind coverage for you with the NFIP. Tower Hill’s flood policy allows you to buy coverage with just a 3 day waiting period.
Discounts & Other Benefits -If you have your home owner’s policy with Tower Hill you are eligible for a 5% discount on your homeowner’s policy. You will also benefit from a single adjuster and streamlined claims process for wind and water damage.
Tower Hill’s private flood insurance program is only available in Florida coastal counties as of right now, but they have announced that they plan to launch the product in other areas soon.
Don’t Wait Until It’s Too Late
Your Homeowner’s Insurance Does NOT Cover Flood.
Contact us to learn more about the national vs. private flood insurance programs, or to receive a no hassle quote.
