Flood Insurance Waiting Periods: Why You Shouldn’t Wait Until It’s Too Late

As a homeowner, you likely understand the threat of floods. These natural disasters are among the most common and costly throughout much of the United States. Given their proximity to bodies of water, frequent weather patterns and relatively low elevation, many Florida homeowners may need to be particularly mindful of these threats. Knowing how flood insurance works and how to navigate possible waiting periods is critical.

What Is a Waiting Period?

While you may be familiar with the importance of flood insurance, purchasing a policy does not immediately guarantee you coverage. Many flood insurance policies include a waiting period, which establishes a certain amount of time during which your coverage is not yet active. After the waiting period expires, you’ll enjoy the benefits of your policy, but losses occurring between when you purchase insurance and when it becomes active will not be covered.

How Do Flood Insurance Waiting Periods Work?

The durations of flood insurance waiting periods can vary depending on where you get your coverage and other policy specifications. Although many people purchase coverage through the Federal Emergency Management Agency’s National Flood Insurance Program (NFIP), these policies typically include a 30-day waiting period. This means that even though you’ve purchased a policy, you’ll have to avoid losses for approximately a month before enjoying its financial protections.

In recent years, the private insurance market has become more active in offering flood coverage. These policies may offer more robust financial protection, including higher coverage limits and shorter waiting periods. For example, while NFIP plans generally do not become active for 30 days, private insurance may do so in as little as 10 to 14 days.

Some policyholders may also be exempt from waiting periods or privy to shorter delays under certain circumstances, such as the following:

• You’re purchasing coverage to fulfill a mortgage lender’s requirements

• You’re making adjustments to an existing flood insurance policy upon renewal

• Updated flood maps now classify your home as being in a high-risk area

We’re Here to Help

Waiting too long to get flood insurance could expose you to potentially devastating financial losses. At The Marvelous Associates Inc., we’re committed to helping you avoid these situations by promptly procuring appropriate policies. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.