Flood Insurance

Protect Yourself with Flood Insurance

Just a few inches of water from a flood can cause tens of thousands of dollars in damage. The average flood claim over the last ten years has amounted to nearly $48,000.  Flood insurance is the best way to protect yourself from devastating financial loss.  Congress created the National Flood Insurance Program (NFIP) in 1968 to provide help for property owners to financially protect themselves.  Flood insurance is available to homeowners, renters, condo owners/renters, and commercial owners/renters. Costs vary depending on how much insurance is purchased, coverage, and the flood risk of the property.

All policy forms provide coverage for buildings and contents. However, you might want to discuss insuring personal property with us, since contents coverage is optional. Typically, there's a 30-day waiting period from date of purchase before your policy goes into effect. That means now is the best time to buy flood insurance.

As a homeowner, it's important to insure your home and its contents. Depending on your property location, your home is either considered at high-risk or at moderate-to-low risk for a flood. Your insurance premium will vary accordingly.

Moderate-to-Low Risk

Most homeowners in a moderate-to-low risk area are eligible for coverage at a preferred rate. Preferred Risk Policy premiums are the lowest premiums available through the NFIP, offering building and contents coverage for one low price. In fact, building and contents coverage starts at just $129 per year.

If you don't qualify for a Preferred Risk Policy, a standard rated policy is still available. Even though flood insurance isn't federally required, anyone can be financially vulnerable to floods. People outside of high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding. When it's available, disaster assistance is typically a loan you must repay with interest.

High-Risk

If you live in a high-risk area, a standard rated policy is the only option for you. It offers separate building and contents coverage.
The Dwelling Form provides insurance for buildings with one to four units, including single-family condominium units and townhouses. The General Property Form provides insurance for other- residential and commercial buildings. Both forms provide flood insurance on contents, if you have purchased this optional coverage.

Flood insurance premiums are calculated based on factors such as:

• Year of building construction
• Building occupancy
• Number of floors
• The location of its contents
• Its flood risk (i.e. its flood zone)
• The location of the lowest floor in relation to the elevation requirement on the flood map (in newer buildings only)
• The deductible you choose and the amount of building and contents coverage
• If your home is in a high-risk flood area and you have obtained a mortgage through a federally regulated or insured lender, you are required to purchase a flood insurance policy.