Flood Insurance

On the one hand, a flood can be defined as any event in which water covers your property. On the other hand, a flood must attain a certain threshold of size to be regarded as a National Flood Insurance Program (NFIP) "flood." The water should occupy at least two acres (about the size of a baseball outfield) or cover more than one policyholder's property.

Many homeowners assume that their flood insurance covers everything in their home, but that's not the case. Suppose you want to ensure your property is completely covered. In that case, you may need to purchase additional coverage for your belongings or wait until you've made enough progress on repairs to have floodproofing done.

Your flood policy will cover three main parts of your home: the structure, contents, and the land it sits on.

Structure – This includes everything that is part of the physical building: walls, floors, ceilings, and other permanent fixtures. Your policy will also cover equipment that pumps water out of your basement and into the sewers.

Contents – Your policy will pay for any loss related to your belongings. For example, if your furniture is damaged by floodwater in your living room, your policy will pay for repairs or replacement items. If you have a safe in the house, your policy will cover whatever was inside it when it was submerged in.

Land – Flood insurance covers your house and its foundation and the land it sits on. If your home is built on a concrete slab, for example, the foundation can sustain substantial damage even if your house above ground is undamaged.

It's also worth noting that most policies will pay to clean up any mud and debris left behind by a flood.

A flood insurance policy is what you need to be covered for flooding. Your homeowner's or renters' policy probably won't protect all of your losses from flooding in certain areas, like along the coast and in flood zones. This means that it is vital to speak with a local insurance agent about a separate flood insurance policy just in case it becomes necessary to rebuild your home due to damage from flooding.

If you're building a new home or business, you may already know that it is essential to have flood insurance. The federal government requires any home or business located in an area prone to flooding and financed through a government-backed lender to carry flood insurance.

Even if you don't have a federally backed mortgage, you may still want to buy flood insurance if you:

• Live near a water body, such as a river or stream that can overflow its banks during a storm.
• Live in an area prone to flooding because of heavy snowfall or rain.

Call your local agent to determine whether you're required to have flood insurance.

Flood insurance rates vary by location and the coverage amount. The annual premium for a commercial or residential property is based on its replacement cost — the amount it would take to rebuild the building today, not what it cost when it was built. You might need several quotes to find one that's comparable to your structure's current value.

All policies sold through the National Flood Insurance Program (NFIP) are risk-based, meaning they are priced according to the likelihood that you will need to file a claim compared with other policyholders in your area. Rates are set annually based on several factors, such as flood zone designation, the topography of your property, and the type of construction used for your home.

Do you need flood insurance? If you live in a high-risk zone, there's no way around it. Whether you're looking to purchase a first home or want to cover your investment property, our professionals can help you navigate the details of getting flood insurance.

We invite you to discover and experience the benefits of our locally owned agency by contacting us today.