Last Updated on September 29, 2020 by Andrew Lee
The State of Wyoming is well-known for its impressively diverse landscape, with it featuring spectacular snow-capped mountains, jaw-dropping acres of open lands and prairies, and unpolluted waters. This natural beauty is one of the main drivers behind the huge number of people who have decided to become its permanent resident.
In WY, the percentage of owned homes totals 69% – proof that its residents are enjoying a good quality of life. And because many of these individuals are smart consumers, they understand completely just how important having an extensive Wyoming homeowners insurance policy is. And they know that flood coverage contributes significantly to making their policy complete.
Homeowners insurance in WY: A quick overview
One of the most important things you should know about homeowners insurance is that policies vary, whether slightly or widely. In fact, as the Wyoming Department of Insurance advises, even just the slightest difference in coverage can already lead to policyholders paying thousands of dollars using their very own money. This is why the DOI strongly recommends its residents to understand the inclusions and exclusions of their insurance.
Almost all policies that come from both local and licensed foreign insurers don’t include flood coverage.
Flood insurance: Key facts every WY resident should know
Since standard homeowners insurance policies exclude flood as a named peril, Congress developed a way for property owners to protect their valuables. This took the form of the National Flood Insurance Program (NFIP). Its goal is to aid in the decrease of the severe after-effects of flooding in the country, one of the reasons behind the program’s low-cost flood insurance offers.
To help you have a clearer picture as to how NFIP works, take a look at these must-know details about it:
Federal Disaster Assistance vs. NFIP
A lot of people think that the Federal Disaster Assistance will help them pay for the costs associated with flood damage/loss. This isn’t necessarily the case, since it doesn’t serve the same purpose as insurance does. It’s a type of loan with low-interest rates that flood victims can apply for so they can receive assistance in covering damages and losses.
NFIP, on the other hand, provides affordable insurance to residential property owners, tenants (renters), and businesses. Those who carry this type of coverage can protect themselves and their finances in the event a flood strikes and results in property damages or losses.
Eligibility Requirements for the NFIP
There are certain requirements you should meet in order to qualify for the insurance the National Flood Insurance Program offers. First, you need to have a house located in a community that participates in the program. You can check it in this NFIP Community Status Book.
Renters Flood Insurance
Even as a tenant, you can still qualify for the NFIP coverage, as long as the rental property you reside in belongs to a community participating in the program.
Who Should Have Flood Insurance?
Flood damages and losses can happen to anyone, even those who live in low-risk areas. In fact, as researchers from the University of Wyoming reports, almost every county in the state has already experienced and suffered from floods and flood damages/losses. This is why you shouldn’t consider flood insurance as just another extra expense.
The bottom line: Don’t take floods lightly
Flooding is one of the most dangerous, destructive events that you can ever face, so it pays to have protection against it. Although you can’t prevent it from happening, you have can still implement several strategies that will safeguard your many different investments. So always keep in mind that a Wyoming homeowners insurance policy is not complete without flood coverage.