26 Aug Maui Hawaii Flood Insurance
When many people hear the words, “Maui,” they have mental pictures of a tropical paradise. With sunny and warm weather, beautiful scenery, and plenty of beachfront, it isn’t a puzzle why people like the island so much. But as year-round Maui residents know, even an island paradise can have its problems, including natural disasters. Floods are one of the most destructive natural disasters that can affect Maui, and in recent years, they have occurred on more than one occasion and left a path of physical and financial destruction. Homeowners and renters in Maui should be aware of the potential for flooding at and around their property and purchase sufficient flood insurance to protect themselves financially. For Maui residents who are in the market to purchase a flood insurance policy, there are two options currently available.
Maui as a whole participates in the National Flood Insurance Program (NFIP). Residents have access to flood insurance policies provided and funded by the federal government, which are made available through any local insurance agency that partners with the Federal Emergency Management Agency (FEMA) and NFIP. As part of this partnership with the federal government, Maui residents can receive subsidized rates for their insurance policies or cheaper premiums overall if they take special measures to modify their homes and reduce the risk for excessive flood damage. These precautions and modifications include steps like installing heating and cooling units above flood level or installing flood vents beneath the home’s foundation.
| What is a SFHA?SFHA stands for Special Flood Hazard Area. This is the designation given to certain areas by FEMA if there is at least a one-in-four chance that the area could be affected by flooding even once during a thirty year period. |
It is important to know that the decision to obtain insurance may not be voluntary for some homeowners.Homes that are both mortgaged through federally-funded programs and located in a Special Flood Hazard Area (SFHA) are required by law to be covered with a flood insurance policy. Also, regardless of whether or not the decision to purchase a flood insurance policy is optional, Maui residents should make their way through the decision process as quickly as reasonably possible, as coverage from NFIP flood insurance policies take thirty days to go into effect after the policy has been approved.
Maui property owners who are in searching for other flood insurance policy options can consider a newer option for coverage: the National Catastrophe Flood Insurance Program (NCIP). Unlike the NFIP, this program is privately underwritten. Proponents of the NCIP state that the program may be able to provide higher and more comprehensive coverage limits at a lower premium. Additionally, NCIP policy coverage begins to take effect only fifteen days after the policy has been approved.
Owning a property on Maui is a privilege that few others in this world can claim to enjoy. The natural beauty of the island and the warm, sunny climate, all coupled with a rich culture and history makes Maui a wonderful place to call home. By purchasing a flood insurance policy, Maui residents are protecting their valuable investment and ensuring that in the event of a damaging flood, they can be restore or replace their home or belonging without paying high damage-related costs. Contact us now for more information about the Maui Hawaii flood insurance.
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.
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