Floods are the most devastating natural disaster in the United States each year causing billions in losses and displacing thousands. While flooding is a common concern for those near rivers and streams, all homes in the United States can be caught off-guard by floods. When it comes to flood insurance, it is important to understand what flood insurance is and what is covered. Many people think flood insurance is anything to do with water in their home. This is far from the truth. Floods are defined as surface water that enters your home from the outside – not to be confused with a leaky roof or a broken pipe, loose toilet or other plumbing related issue. Another issue altogether is sewer backup which may or may not be covered depending on what caused it to occur.
Flood Insurance: Flood insurance covers your property and contents from damages that occur when water from outside the home enters the home. Beit a heavy rainstorm, a clogged drain in the street or even a hurricane that causes a tidal surge that backs up streams and rivers.
- Cost: According to floodsmart.gov, the average flood insurance policy costs around $700 a year. Depending on your area and whether you’re in a flood prone area, your costs can be higher or lower.
- What’s covered: The typical flood insurance policy will cover your building and the contents. Be sure to discuss contents coverage with your agent to ensure you have enough coverage. The price of the policy will be largely determined by how valuable your items are and how much coverage you need.
When to buy: Flood insurance requires a 30 day waiting period so don’t wait until a major storm is announced as you will not be eligible for coverage.
Frequently Asked Questions about Flood Insurance
How much does flood insurance cost?
Flood insurance costs vary greatly depending on the location of your home and the likelihood that it could flood. To see if you’re located in a flood zone, you can use the FEMA Map Service
How do I tell what my flood zone is?
A call to our agency, we can quickly determine if your home is in a flood zone. You can also review the FEMA Flood Map and determine your risk.
What happens if I have flood damage and no flood insurance?
If your home floods and you do not have flood insurance, your options are limited to applying for grants and loans to help you pay for the cost of repairing and replacing your home and contents.