Why Luxury Homes Need Excess Flood Insurance

Luxury homes have a high value, are often unlike any other property, and require extra protection. As a high-value homeowner, your property may be full of luxurious items that need special consideration. In addition to purchasing more home insurance, it’s essential that you consider excess flood insurance. Here’s why.

Why High-Value Homes Need Excess Flood Coverage

What is excess flood coverage?

Most homeowners who need flood insurance will buy it from the government’s National Flood Insurance Program (NFIP). However, NFIP policies max out at $250,000 – which could be well below the rebuild value of your luxury home. To better protect your property, consider purchasing excess flood insurance in the private sector.

An excess flood policy mimics the coverage under your regular NFIP policy. This includes repair or replacement of the structure and essential systems of your home if it is damaged due to flooding. Excess flood coverage also pays for personal property in your home, such as clothing, furniture, and electronics.

Who needs excess flood coverage?

If you own a property that would cost more than $250,000 to rebuild, you may be required to buy excess flood insurance by your mortgage lender. Having this coverage in place means that your high-value property is better protected against flood damage, and you would have the resources needed to rebuild your property.

Keep in mind that if you go without this coverage, you could be putting your finances at risk. If your home is completely destroyed and the $250,000 is not enough to cover the cost to repair or rebuild your home, then you will be on the hook for the remaining expenses.

Secure the right excess flood insurance for your needs. At J. Archer Insurance Group, our experts are ready to help. Serving Houston, Texas and beyond, contact us today.

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