Federal flood insurance now available in Ludington

LUDINGTON — The City of Ludington has joined over 21,000 communities nationwide that are allowed to purchase federally backed flood insurance. The availability follows the city’s adoption and enforcement of ordinances to reduce flood losses and acceptance by the National Flood Insurance Program.

According to City Manager John Shay, the city is now participating in the NFIP effective May 27, 2014. Residents in the city will be able to purchase flood insurance up to the limits under the emergency phase of the program. However, with several exceptions, there is a 30-day waiting period before flood insurance coverage goes into effect. For single-family dwellings, the building coverage limit is $35,000 and the contents coverage limit is $10,000.

Renters can also protect their belongings by purchasing contents coverage. Commercial properties are also covered with building and contents coverage limited to $100,000 each. Higher limits of coverage will be available after the initial emergency phase.

Lenders must require borrowers whose properties are located in a designated flood hazard area to purchase flood insurance as a condition of receiving federally backed mortgage loans in accordance with the Federal Disaster Protection Act of 1973.