Spring is here and so are the storms, rainfall, and flooding associated with the change of seasons. Typically, March and April have a high precipitation level in the Bay State. Currently, about 400,000 residents in Massachusetts live in areas that are likely to flood. If your home is located in a flood plain, your mortgage lender will require flood insurance. But just because your home is not in a designated flood plain, don't assume you will never have damage from flooding.
The Division of Insurance, an agency within the Office of Consumer Affairs and Regulation (OCABR), administers the state’s laws pertaining to the protection of the insurance consumer through the regulation of the insurance industry. The good news for consumers in Massachusetts is you can purchase flood coverage at any time.
While we transition to yet another season in New England, it’s a great opportunity to evaluate your insurance plans. OCABR compiled information about flood insurance in preparation of the weather on the way.
Flood insurance protects two types of insurable property: building and contents. The first covers your building, the second covers your possessions. Flood insurance does not cover the land that your building occupies.
Flood insurance is available to protect homes, condominiums, apartments and nonresidential buildings, including commercial structures. A maximum of $250,000 of building coverage is available for single-family residential buildings; $250,000 per unit for residential condominiums. The limit for contents coverage on all residential buildings is $100,000, which is also available to renters. Commercial structures can be insured to a limit of $500,000 for the building and $500,000 for the contents.
Depending on where your home is located in Massachusetts, you may be able to purchase flood insurance through the National Flood Insurance Program (NFIP)
. Administered by the federal government, the insurance is available to renters, homeowners and business owners through approximately 85 insurance companies in more than 20,800 participating communities nationwide.
If you believe you are in a high-risk area, and are interested in flood insurance, contact your insurance provider to find out if your community participates in the NFIP
. Visit the Division of Insurance’s website
on flood assistance and flood insurance in Massachusetts.