Flood Insurance FAQ

Flood Insurance FAQ

HOW MUCH DOES FLOOD INSURANCE COST?


Costs for flood insurance will vary depending on how much coverage you buy, what the policy covers (does it just cover the structure? the contents of your home?) and your property’s flood risk. The NFIP offers flood risk maps to help you identify your community’s level of risk.

WHEN IS FLOOD INSURANCE REQUIRED?


If your home falls in a high-risk flood area and you carry a mortgage from a federally regulated or insured lender, your lender is legally mandated to require flood insurance on your property. Typically, that’s not the case if your home falls in a moderate-to-low risk area. However, a lender may require you to hold flood insurance at any time — even if the company is not legally mandated to do so, according to Floodsmart.gov.

DOES HOMEOWNERS INSURANCE COVER WATER DAMAGE?


No type of flood damage, no matter the source of the water, is covered by standard homeowners policies. Flooding, for example, can occur from storms, over-saturated ground, overflowing or surging bodies of water such as rivers, ponds, lakes and oceans.

HOW CAN I HELP PREVENT FLOOD DAMAGE?


  • Elevate your furnace, water heater, and other equipment above the expected flood level.
  • Consider installing a Sump Pump, a pump used to remove water that has accumulated in the basements of homes.
  • Keep sandbags handy to help divert water away from your home.
  • Have a storage of plywood, nails, shovels, and plastic sheeting ready to install.

DO I NEED FLOOD INSURANCE?


Yes.  The Federal Emergency Management Agency (FEMA) says that all 50 states have experienced floods or flash floods in the past five years, and that more than 20 percent of the claims it handles come from the moderate- to low-risk regions.  Additionally, according to Floodsmart.gov, floods are the No. 1 natural disaster in the United States.