Flood Insurance 101

Did you know FEMA estimates just one (1) inch of flooding can cause more than $25,000 in damage?

But not everyone has the same risk of flooding. The National Flood Insurance Program (NFIP) helps communities assess their flood risk with maps defining three categories:

  • High-risk: 1% chance of flooding annually. Zones usually include the letters ‘A’ or ‘V’.
  • Moderate-to-low risk: Less chance of flooding and insurance is not required. Zones usually include the letters ‘X’, ‘B’, or ‘C’.
  • Unmapped: Flood analysis has not been conducted, but a flood can still occur.

For those living in a high-risk flood zone, your mortgage company will require the purchase a flood insurance policy. This requirement is based on statistics which show homes in a high-risk flood zone have a 1 in 4 chance of becoming flooded during the life of a 30-year mortgage.

And even if you do not carry a mortgage or are a renter, you will still want to buy a flood insurance policy. Properties in a high-risk flood zones, also known as 100-year flood plains, are 27 times more likely to suffer a loss by flood than by fire.

If you do not live in a high-risk flood zone, you should still consider purchasing flood insurance as 25% of all flood losses occur in unmapped, low, or moderate risk zones.

Flood insurance policies through the NFIP can provide limits up to $250,000 and cover the following:

  • Debris removal
  • Built-in appliances
  • Foundation and structure
  • Garage and detached structures
  • Plumbing and electrical systems
  • Personal property (actual cash value)
  • Air conditioning systems and furnaces
  • Permanently installed fixtures and flooring
  • Up to $2500 for valuables (jewelry, memorabilia, furs, and art)

It is important to note flood policies do not cover damage caused by sewer backups, damage caused by mold or termites, vehicles, swimming pools or spas, or landscaping.

No matter where you happen to live, learn what your risk of flooding might be by contacting our office today. You’ll be surprised just how affordable flood insurance can be.

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