The Big Island Hawaii Flood Insurance

The Big Island. A simple, yet descriptive name for the island of Hawaii.  This little piece of paradise is one of the most naturally beautiful places on earth and is generally blessed with wonderful weather all year long.  But once in awhile, headaches like natural disasters pop up and threaten to disrupt life for residents. Floods are particularly destructive natural disasters that can affect The Big Island, occurring on a fairly frequent basis some years and leaving financial and physical destruction in their wake. Property owners on the Big Island should be aware how floods can affect them personally and purchase the appropriate type and amount of flood insurance needed to protect themselves financially. For Big Island residents who are currently in the market to purchase a flood insurance policy, there are currently two options available.

The first program option for Big Island residents is the National Flood Insurance Program (NFIP). Residents can purchase federally-funded policies from the NFIP through any local insurance agency that partners with the Federal Emergency Management Agency (FEMA) and NFIP. If NFIP policy rates seem to be cost prohibitive, Big Island residents should be made aware that they can receive subsidized rates for their insurance policies if they take special measures to mitigate their property’s flood risks. Such preventative measures include steps like installing heating and cooling units above the average flood level or by installing features like flood vents beneath the home’s foundation.

Big Island homeowners should be aware that the decision to purchase flood insurance may not actually be an option, but rather a requirement. Homes that are mortgaged through federally-funded programs and are situated in Special Flood Hazard Areas (SFHA) must be covered by a flood insurance policy. Another important consideration Big Island residents should understand is that coverage from NFIP flood insurance policies is not automatic. Rather, after a policy is approved, a thirty day waiting period must take place before full activation occurs.

Property owners on the Big Island who are in researching all of their flood insurance options can also consider a second option for coverage: the National Catastrophe Flood Insurance Program (NCIP). New to the insurance game, the NCIP is privately underwritten and offered in only a select number of states, including Hawaii. Proponents of the NCIP tout the program as being able to provide higher and more comprehensive coverage limits at lower premium rates. The waiting period for NCIP policy activation is also shorter than the NFIP at only fifteen days.

Big Island life is a way of life that few others in this world understand. Warm, sunny weather, abundant sandy beaches, and a unique culture all combine to make the Big Island a wonderful place to call home. When Big Island residents purchase a flood insurance policy, they are protecting themselves financially and providing themselves a peace of mind that comes only through knowing they will be able to more quickly and easily repair damages when and if they are affected by a flood. Contact us now for more information about the The Big Island 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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