Purchasing flood insurance is much like purchasing any other type of insurance product. You’ll buy it and then use it if and when there is a circumstance to do so. Yet, flood insurance does have a waiting period. You cannot purchase this form of property insurance to cover an existing problem, such as a flood that had occurred just yesterday. You also cannot purchase it in the hopes that it will cover the storm that is coming in next week.
In most cases, there is a 30 day waiting period from the time that you purchase the flood insurance before the policy will actually be effective at protecting your property. That means that in most cases, if you buy the policy and something occurs the next day or even a few weeks later, you may not have coverage. However, there are a few specific exceptions to this type of loss.
New Loans: This waiting period does not apply in situations where you are purchasing the policy alongside the modifications to your home loan, including obtaining a loan, increasing the loan or extending the terms of your loan.
SFHA Flood Zone: If the property is in an area that was just newly designated as a high-risk area and you are buying flood insurance during that first 13 month period after the map has been updated or revised, there is no waiting period in place.
Lender Requirements: In some cases, it may not apply when the lender determines that a home that does not have flood insurance does need it and it becomes a requirement by the lender that the coverage be in place.
Additional Coverage: In some cases, you may elect to add more flood insurance at the time of renewing your policy. In this case, there is no waiting period for the full amount to be available to you.
There may be other situations that apply as well. When purchasing flood insurance, consider the value and importance of having this policy in place. Talk to your insurer about when this coverage will be in effect and what happens if a claim occurs in the period of time prior to the waiting period expiring.
Get your coverage before disaster strikes. Call The Weimer Group at (877) 791-1707 for more information on flood insurance in Philadelphia.