Residents of the City of Gluckstadt can now purchase federally backed flood insurance.
The City of Gluckstadt has joined 22,000 communities nationwide who are allowed to purchase federally backed flood insurance. This availability follows the community’s adoption and enforcement of ordinances to reduce flood losses and acceptance by the National Flood Insurance Program (NFIP).
The city became a NFIP participant effective May 2, and residents can now purchase flood insurance under the Regular Phase of the program. Residents should be aware there is a 30-day waiting period before the insurance goes into effect after purchasing. For single family dwellings, the building coverage limit is $250,000 and the contents coverage limit is $100,000. Renters can also participate and protect their belongings by purchasing contents coverage. For commercial properties, the building and contents coverage limits are both $500,000.
In accordance with the Federal Disaster Protection Act of 1973, lenders must require borrowers whose properties are located in a designated flood hazard area to purchase flood insurance as a condition of receiving a federally backed mortgage loan.
The NFIP is implemented through the Federal Emergency Management Agency. There are over five million flood insurance policies in more than 22,000 participating communities nationwide.
