Protect your family with Flood Insurance 101

Why do I need Flood Insurance?

Flooding is the most common disaster in the United States. Every is at risk of experiencing some sort of flood damage. Only a small percentage of homes have coverage for such an event. 

How does Flood Insurance work?

A standard home policy does not provide coverage for damage caused by flooding. A separate insurance policy is needed to protect you from damage because of rising water. One inch of flooding can cause up to 25k of damage to your home.  

Let’s look into the basics:

Types of Coverage:

Building Property Coverage: Covers the structure of your home, including the foundation, walls, and plumbing.

Personal Property Coverage: Covers personal belongings like furniture, appliances, and electronics.

How does a policy work?

Purchase Through NFIP: Most flood insurance is provided through the National Flood Insurance Program (NFIP), managed by FEMA. You can buy a policy from private insurers that participate in the NFIP or through some private insurance companies.

Policy Limits: Flood insurance policies have coverage limits. For example, the maximum for building coverage is generally $250,000, while personal property coverage can go up to $100,000. You can often choose lower limits if you need.

Deductibles: Policies come with deductibles, which is the amount you pay out of pocket before the insurance kicks in. Higher deductibles can lower your premium but increase your costs in a claim.

Waiting Period: There’s typically a 30-day waiting period after you purchase a policy before coverage begins, so it’s essential to plan ahead.

Claims Process: If a flood occurs, you file a claim with your insurer, who will assess the damage. You may need to provide documentation, such as photos and receipts, to support your claim.

Payouts: Once your claim is approved, the insurance company will provide a payout based on your policy limits, less any deductibles.

Renewal: Flood insurance policies are usually annual, so you’ll need to renew each year. Premiums can change based on various factors, including changes in flood risk assessments or property value.

So is it worth it?

Flood insurance is important for several reasons:

1. Home Protection: Standard homeowners insurance typically doesn't cover flood damage. Flood insurance can protect your home and belongings from costly repairs.

2. Financial Security: Flooding can lead to significant financial losses. Having flood insurance can help you recover more quickly and avoid overwhelming expenses.

3. Peace of Mind: Knowing you’re covered in case of a flood can reduce anxiety, especially if you live in a flood-prone area.

4. Lender Requirements: If your home is in a high-risk flood zone, your mortgage lender may require you to carry flood insurance.

5. Rebuilding Assistance: Flood insurance can help cover the costs of rebuilding and repairs, making it easier to get back to normal after a disaster.

6. Community Support: By having flood insurance, you contribute to a system that helps communities recover from flooding events, ensuring resources are available for rebuilding efforts.

Protect your home and your family with Flood Insurance 101. Our comprehensive home insurance coverage safeguards your home against unexpected damage or loss.