According to the Federal Emergency Management Agency (FEMA), floods are one of the most common natural disasters in the United States. Floods have many causes and can occur anywhere in the country, making flood insurance an important consideration for homeowners. Some of the most common events that lead to them are:
- Storm surges in hurricane-prone areas
- Flash flooding, caused by periods of intense rainfall
- Mudslides, caused by long, heavy rain periods on a hill or mountainside
- Snowmelt, caused by the still-frozen ground unable to absorb excess water
- Ice jams, which are formed when an ice chunk flowing in a river or stream blocks, dams or narrows passageways, causing overflow
- Urban development, such as new construction and/or ground paving, which alters the topography by not allowing the land to drain properly
Flooding is a significant risk for homeowners that can lead to damaged drywall, flooring, furniture and electronics. In fact, it only takes an inch or two of water to cause major damage.
According to FEMA, a single inch of floodwater can cause about $25,000 worth of property damage.
If water isn’t removed quickly, harmful mold can develop, posing health risks to occupants. In some cases, flooding can impact the livability of a home. With flood damage costs projected to rise as the climate warms, it is crucial for homeowners to have flood insurance to protect against unforeseen flooding losses.
What Does Flood Insurance Cover?
A standard homeowners insurance policy does not cover damages from flooding, and therefore, a separate flood policy is needed to cover losses to your property caused by flooding, including:
- Structural damage
- Furnace, water heater and air conditioner damage
- Flood debris clean-up costs
- Floor surface (carpeting and tile) damage
- Electrical and plumbing systems
You can also purchase a flood insurance policy to cover the contents of your home, such as furniture, collectibles, clothing, jewelry and artwork.
Keep in mind that there is typically a 30-day waiting period before coverage starts, so it’s important not to wait until a storm is approaching to purchase a policy.
Federal Disaster Assistance
Federal disaster assistance is only available if the president of the United States formally declares a disaster. Even if you are eligible for disaster assistance, it is often a loan you have to repay with interest.
Cost of Coverage
The cost of flood insurance can vary depending on various factors, such as the home’s location and unique features. However, rates through the National Flood Insurance Program (NFIP) do not differ from company to company or agent to agent.
Most policies purchased through the NFIP have coverage limits of $250,000, and if a flood causes too much damage, you may not have enough to rebuild or repair your home. Alternatively, private flood solutions may provide higher coverage limits and broader coverage options.
Contact us today to determine your premium and recommended coverage levels.
Who Needs Flood Insurance?
While everyone can benefit from flood insurance, it’s especially vital for those living in flood-prone areas. Consider purchasing if:
- You live near rivers, coastal regions or low-lying land
- Your house is in a designated flood zone
- Your mortgage is financed by a lender that requires flood insurance
It’s important to note that flooding can occur anywhere—not just in high-risk zones. The National Flood Insurance Program (NFIP) reports that one-third of all annual claims paid are for policies in low-risk communities. Because new land development can increase flood risk by changing natural runoff patterns, it is a good idea to purchase flood insurance even if your property is not located near a large body of water.
Let Us Help You Secure Proper Coverage
Floodwaters have the power to damage not only your home and sense of security, but also your financial future. Contact us today for flood insurance solutions to protect against your risks, or for more information on flood insurance, including premium costs, levels of coverage and the flood risk for your area.
