Flood Insurance – What You Need to Know
A flood doesn’t need to make national headlines to feel like a disaster.
Consider this scenario: You’re away on a much-needed vacation. While you’re traveling, a warm rain causes snow to melt, inundating your neighbor’s yard and yours with surface water, which seeps into your basement and furnace. You come home to a flooded basement and a cold house.
These mini floods happen more often than you think. In fact, a quarter of all flood claims come from homes outside of official flood zones. The good news? We can help you get the right protection.
Flood Insurance – What You Need to Know
Flooding is the nation’s #1 natural disaster. Floods are actually caused by torrential downpours, melting snow, overflowing levees, tropical storms, and even inadequate drainage systems. As infrastructure springs up where forests and other open spaces once were, the land is losing its natural ability to absorb water – and floods are occurring in more places and becoming more severe.
You can protect yourself with flood insurance if your community participates in the National Flood Insurance Program (NFIP). More than 20,000 communities across the country participate in the NFIP.
Why do I need flood insurance?
In some cases, flood insurance is mandated if you live in a special flood hazard area (SFHA) and your mortgage is federally insured. However, approximately 25% of all flood claims occur outside SFHAs, and a standard homeowners insurance policy does not cover flood damage. You can access your risk at floodsmart.gov
Doesn’t federal disaster assistance pay for flood damage?
Federal disaster assistance is only available if the President of the U.S. declares a disaster, and approximately 90% of all disasters are not officially declared. Even when a disaster is declared, government assistance is provided as a loan that you must pay back with interest. Flood insurance, however, will cover damages even if a disaster is not declared.
How much coverage do I receive?
NFIP offers up to $250,000 in government-guaranteed coverage for your home and up to $100,000 for the contents.
Is it affordable?
The average annual premium for flood insurance is around $500 per year. For homeowners living in a low-or moderate-risk area, it costs even less – as little as $119 per year.
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