Administered by the National Flood Insurance Program, flood insurance is a vital tool for insuring your property against one of the most destructive natural disasters you're likely to face. However, as Staten Island's insurance agents at Midland Insurance Agency explain, knowing what your policy covers and how much it will pay if your belongings are damaged is highly complex.
For example, flood insurance values property in two different ways: the Replacement Cost Value (RCV) and Actual Cash Value (ACV), with special considerations for properties that are subject to multiple claims.
RCV is calculated as the actual amount it would cost to completely replace the damaged parts of your structure, without depreciation. Only single-family homes that were your primary residence are eligible, as long as the coverage is at least 80% of the value of the building.
ACV, on the other hand, factors in depreciation when calculating the value of your loss. Furnishings and other household items are almost always paid on an ACV basis, with the original cost less the depreciation over time.
If your property has suffered flood damage that resulted in insurance claims of $5,000 or more since 1978, or if two payments have been made totalling more than the value of the property, you may be eligible for a grant to pay for mitigation techniques that will reduce the likelihood of flooding in the future.
For help deciding which payment structure is right for you, or if you qualify for a mitigation grant, visit Midland Insurance Agency online or call (347) 705-7912 to schedule an appointment or get flood insurance quotes today.