I’m in the market for flood insurance and I’m trying to decide between an NFIP policy and private flood insurance. I’ve read that NFIP has some limitations, but private insurance could be risky if the company goes out of business. Has anyone here had experience with either? Which one would you recommend?
I went with NFIP because it’s backed by FEMA and I didn’t want to risk dealing with a private insurer. The limits are a bit low, but it covers the basics like my home and some of my stuff.
prince said:
I went with NFIP because it’s backed by FEMA and I didn’t want to risk dealing with a private insurer. The limits are a bit low, but it covers the basics like my home and some of my stuff.
Yeah, I’ve heard that NFIP doesn’t cover outdoor stuff like pools or decks. Did you have to buy any additional coverage for that?
@Mickey
No, NFIP doesn’t cover those things at all. If you need coverage for pools or decks, private flood insurance is a better option.
I ended up going with private insurance through Neptune. They offered higher coverage limits and included stuff like my basement and pool, which NFIP wouldn’t cover.
Ainsley said:
I ended up going with private insurance through Neptune. They offered higher coverage limits and included stuff like my basement and pool, which NFIP wouldn’t cover.
Did you look into whether Neptune is financially strong? I’m a little worried about private companies going out of business.
@Micah
Yeah, I checked their rating on AM Best. They’ve got a good rating, so I felt comfortable with them. It’s definitely something you should check before going with a private insurer though.
If you just need basic coverage, NFIP is a good option, especially if your mortgage lender requires it. But if you’ve got a higher-value home, private flood insurance might be a better fit since they offer more coverage.
@Sloane
I’ve got a high-value home and went with Chubb. They cover up to $15 million, which is way more than NFIP. Plus, they cover valuables like art and jewelry.
If you go with private insurance, just make sure your mortgage lender is okay with it. Some lenders only accept NFIP policies, so it’s something to double-check.
Corey said:
If you go with private insurance, just make sure your mortgage lender is okay with it. Some lenders only accept NFIP policies, so it’s something to double-check.
That’s true! I almost went with a private insurer, but my lender required NFIP, so I had to switch back.
Another thing to think about is the waiting period. NFIP has a 30-day waiting period, but some private companies have shorter ones, like 10-15 days. That might be worth considering if you need coverage quickly.
@Blakeley
Good point. I went with a private insurer for that reason. I needed coverage right away since I was closing on my house and didn’t want to wait a month.