Most homeowners believe a standard policy will cover them in the event of a flood or other natural disaster. However, this is usually not the case. Most homeowners must purchase additional riders to obtain such coverage. Unfortunately, these riders can be quite expensive depending on where you live. However, preferred risk insurance provides coverage for lower-income families living in high-risk areas. The professional insurance agents at Lafever Insurance Agency have been providing their Cookeville, Tennessee, clients with affordable options for years. Below, they’ve outlined exactly what preferred risk insurance is.

An Affordable Insurance for Low-Income Families

With natural disaster policies out of reach for many homeowners, preferred risk insurance makes it possible for families to obtain the coverage they need to stay safe in the event of a flood. These policies are mandated by FEMA and provide coverage to low-income families in areas known to have flooding issues.

Many families are displaced each year due to flooding and other natural disasters. Luckily, this specialized policy allows them the coverage to get back on their feet.

Protection for High-Risk Flood Zones

FEMA requires that the insured groups using these policies live in a specified flood hazard area on the date the policy goes into effect. In addition, the building must adhere to certain safety requirements and have a specific loss history. Otherwise, it will not qualify for such a policy. For instance, a home that has a history of many claims, floods, or other damages might not be eligible for preferred risk insurance. 

If you’re looking for quality coverage but are not sure where to turn, speak with a qualified agent. The professional staff members at Lafever Insurance Agency pride themselves on finding insurance solutions for each of their valued clients. Call them today at (931) 526-3377 to talk about preferred risk insurance, and visit their Yelp page for more general information.