Basic description about the Flood-Insurance-Policy-of-America-for-merge

1. Introduction to Flood
Insurance Policy of USA
Course name: Property and Liability Insurance
Course code: I-503

2. Serial no Name ID No.
1. MD. Rizwanul Hoque 22-190
2. MD. Mehedi Hasan 22-192
3. Jannatul Naim 22-198
4. Ayasha Akter Bably 22-171
5. Nadia Anjum 21-081
6. Md Najmul Hasan 21-097
7. Tripti Ghosh 21-186

3. Flood Insurance Policy
Insurance Policy that covers the losses of property
damaged by water due to floods.
Available for all residential and commercial properties.
In America, National Flood Insurance Program (NFIP) offers flood
insurance policy. Under NFIP, over 50 insurance companies write and
service flood insurance policy in USA.

4. Factors Covered Under Flood
Insurance Policy in USA
The NFIP offers two types of coverage –
 Building coverage
 Electrical and plumbing systems
 Furnaces and water heaters
 Refrigerators, cooking stoves,
and built-in appliances like
dishwashers
 Permanently installed carpeting
 Permanently installed cabinets,
paneling, and bookcases
 Window blinds
 Foundation walls, anchorage
systems, and staircases.
 Contents coverage
 Personal belongings such as
clothing, furniture, and electronic
equipment
 Curtains
 Washer and dryer
 Portable and window air conditioners
 Microwave oven
 Carpets not included in building
coverage (e.g., carpet installed over
wood floors)
 Valuable items such as original
artwork and furs (up to $2,500)

5. Types of Flood Insurance Policy
 Insurance policy for Homeowner
 Insurance policy for business owner
 Insurance policy for renter

6. Insurance policy for Homeowner
NFIP offers flood insurance policies to cover home’s structure and belongings.
 What’s covered
 Foundation
 Electrical and plumbing
 Finishing
 Appliances
 Electronics
 Personal belongings, and more.
 Coverage limits
• $250,000 for the building
• $100,000 for the building contents
• These are typically purchased
separately with separate deductibles.

7. Insurance policy for business owner
NFIP offers commercial flood insurance policies to help protect
business’s structure and equipment.
 What’s covered
 Foundation
 Electrical and plumbing
 Finishing, equipment
 Furniture, inventory, and more.
 Coverage limits
• $500,000 for the building
• $500,000 for the building contents
• These are typically purchased
separately with separate deductibles.

8. Insurance policy for renter
NFIP offers affordable, renters flood insurance to protect the things that
an individual care about in the event of a flood.
 What’s covered
 Furniture
 Clothes
 Television
 Computers
 Rugs, artwork, and more.
 Coverage limits
• $100,000 for contents-only coverage.
• Starting policy costs: $99/year.

9. Buying process of a Flood
Insurance policy
Whether for buying a new policy or renewing an
existing policy, one can buy a flood insurance policy by
calling insurance company or calling your local
independent agent, who can write flood insurance
directly with the NFIP.

10. Benefits of Flood insurance policy
 Benefits of NFIP
 Flood insurance claims are paid in every
situation.
 It is not a loan.
 Policy cannot be classified as non-
renewed or cancelled for repeat losses.
 $600 or much less annual average cost
for moderate-to-low-risk area.
 Benefits of PFIP
 Higher rates of coverage
 Enhanced protection.
 May offer replacement value.
 Premiums may be less.
 Shorter wait times for effect.
 May cover loss of business income.

11. Determining premium and Costing
process of flood insurance policies
Determination of premium
A number of factors are considered when determining annual flood insurance premium-
• Flood risks
• The type of coverage being purchased
• The deductible and amount of building and contents coverage
• The location of your structure
• The design and age of your structure
• The location of your structure’s contents

12. Costing process of flood insurance policies
There are some requirements for purchasing flood insurance policies-
 For outside of high-risk area, NFIP’s Preferred Risk Policy(PRP) offers the
option for combination coverage for both contents and building.
 For the high-risk flood area and government-backed mortgage, an individual
is required to purchase flood insurance. Typically, there’s a 30-day waiting
period from date of purchase until your flood insurance policy goes into
effect.

13. Policy term and expiration
 NFIP flood insurance has a policy term of 1year.
 All policies expire at 12:01am on the last day of the effective term
 But remain covered for 30 days after the expiration.
 Claims for losses that occur in this grace period will be honored,
provided that the full renewal premium is paid by the end of the 30-day
grace period.
 Letting policy lapse could cause to lose any discounted rates that have
been being received.

14. Coverage limits
 Coverage up to $250,000 for the building and $100,000 for the building
contents for residential properties.
 Coverage up to $500,000 for the building and $500,000 for the building
contents for commercial properties.
 Coverage are purchased separately, and there are always separate
deductibles

15. Thank you