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February 23, 2021

Flood Insurance

In the event your home suffers flood damage, even a single inch can be costly. Learn more about how to best protect your home in the event of a flood.a body of water  

The Dangerous Truth About Flooding 

Flooding is the nation’s most common natural disaster, according to the Federal Emergency Management Agency (FEMA). Twenty percent of flood claims are filed by people living in moderate- or low-risk areas. Flooding has the power to damage not only your home and sense of security, but also your financial future. How do you best protect your most important investment? What are your options?  

Option #1: FEMA 

Many people wrongly believe that the U.S. government will take care of all of their financial needs if they suffer damage due to flooding. Actually, federal disaster assistance is only available if the president formally declares a disaster. And even if you do get disaster assistance, usually it is a loan you have to repay with interest. This is in addition to any mortgage loans that you may still owe on your now damaged property.  

If you want secure protection from financial loss due to flood damage, federal disaster assistance is not the answer. 

Option #2: Buy Flood Insurance 

Flood insurance policyholder claims are paid even if a disaster is not federally declared. This means you will be reimbursed for all of your covered losses. Unlike federal aid, it never has to be repaid. As long as your community participates in the National Flood Insurance Program (NFIP), you’re eligible to purchase flood insurance.  

As a homeowner, you can insure your home up to $250,000 and its contents up to $100,000. If you’re a renter, you can cover your belongings up to $100,000. As a non-residential property owner, you can insure your building and its contents up to $500,000.  

Your policy generally does not take effect until 30 days after you purchase flood insurance. So, if the weather forecast announces a flood alert for your area and you want to purchase coverage, it’s already too late. You will not be insured if you buy a policy a few days before a flood. There is no waiting period if your lender requires flood insurance in connection with the making, increasing, extending or renewing of your loan. 

An Important Note: 

Not all water losses are considered flood damage.  

For your losses to be covered under a flood insurance policy, the following definition of a flood applies:  

A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from: overflow of inland or tidal waters; and unusual and rapid accumulation. 

Disclaimer:  This brochure is provided for informational purposes only. The information provided herein is not intended to be exhaustive, nor should it be construed as advice regarding coverage. Eligibility for coverage is not guaranteed and all coverages are limited to the terms and conditions contained in the applicable policy.  

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