Why You Should Have a Preferred Risk Policy
The Preferred Risk Policy can save you money!
The Preferred Risk Policy ensures you financial protection against flood damage at a special low price for owners of homes not in high-risk flood areas.
Flood damage is not covered under most homeowner’s policies. To get coverage, you have to buy a separate policy.
In the past 25 years, the NFIP has paid one-quarter of its claims to cover flood losses to those homes in moderate to minimal flood risk zones.
The Preferred Risk Policy provides several coverage combinations for both the building and its contents that range from $20,000 building/$5,000 contents to $250,000 building/$60,000 contents.
People should consider this low-cost protection for their homes and contents because floods occur even in areas no one considers high-risk.
When a flood occurs, there is no guarantee that it will be declared a Federal disaster and that you will qualify for Federal assistance. Disaster relief is often in the form of a low-interest loan that must be repaid.
This adds to your total debt and may wipe out any equity that you have accumulated.
As a condition for receiving disaster assistance, the homeowner must purchase and maintain a flood insurance policy for future protection.
To be eligible for a Preferred Risk Policy, the building must be in a low-risk (B, C, or X) zone on the effective date of the current term.
You can save about 30% of the standard application premium costs if you purchase a Preferred Risk Policy.
Most people invest a major part of their income in a home. Protecting these assets from loss must be a concern