Flood Insurance FAQs

Floods are the most common of all natural disasters. Yet, there are quite a few myths and mysteries surrounding flood insurance. Here are the answers to some of the most frequently asked questions about this critical protection.

Is Flood Insurance Just for Homeowners?

Not at all. While homeowners definitely should seriously consider flood insurance, renters and business owners should also look into the coverage.

Is Flood Insurance a Part of a Basic Property Insurance Policy?

The National Flood Insurance Program (NFIP) is administered by FEMA (Federal Emergency Management Administration), which makes protection available through licensed insurance agents. Since it is separate coverage, it is not included under a standard homeowners’ insurance policy, renters’ insurance policy, or business insurance.

Why aren’t floods covered under a standard homeowners insurance policy?

Flooding is a gradual event rather than a sudden one. That is why many flood insurance policies must be purchased up to 30 days in advance of their taking effect.

What is considered a flood?

One simple description is that flood waters are those that have touched the ground before entering a home.

Should Only Those in High Risk Flood Zones Acquire Flood Insurance?

Flooding can occur almost anywhere. In fact, about 25% of flood insurance claims annually come from outside of high-risk flood zones.

Do Flood Risks Change?

Yes. Due to road construction, building developments, and even climate change, flood risks can change. You may be in a higher-risk area than when you first moved in. You can check area flood zone maps for updated data. These changes are a good reason to have a home insurance review annually.

Is Flood Insurance Expensive?

Rates are based on risks. The higher risk flood zone a property is located the higher premiums will likely be.

If you are interested in learning more about flood insurance and its benefits, contact one of our independent home insurance agents. They can help determine your risks and get you a quote for your coverage. Contact us today to get started.