Floods Are The #1 Natural Disaster In The U.S.
You don’t have to live in a high-risk flood zone to be affected by a flood. A Floods and flash floods can occur anywhere, even in the desert. A Just an inch of water can cause damage to your property. A In fact, in the U.S., flood-related losses cost people more than a billion dollars a year.
What’s Different About Flood Insurance
It only takes a few inches of water, and your home could need major repairs; did you know most property insurance doesn’t cover flooding? A The federal government runs the National Flood Insurance Program (NFIP), which issues flood insurance policies. A Even if you have homeowners, renters, condo, landlord, mobile home or business insurance, you may need to purchase a separate flood insurance policy to be protected from flood damage.
As a homeowner, it’s important to insure your home and its contents. Depending on your property location, your home is either considered at high-risk or at moderate-to-low risk for a flood. Your insurance premium will vary accordingly.
Most homeowners in a moderate-to-low risk area are eligible for coverage at a preferred rate. Preferred Risk Policy premiums are the lowest premiums available through the NFIP, offering building and contents coverage for one low price.
In fact, building and contents coverage starts at just $119 per year. If you don’t qualify for a Preferred Risk Policy, a standard rated policy is still available. Even though flood insurance isn’t federally required, nearly 25% of all NFIP flood claims occur in moderate-to-low risk areas.
If you live in a high-risk area, a standard rated policy is the only option for you. A It offers separate building and contents coverage.
Dwelling policies provide insurance for buildings with one to four units, including single-family condominium units and townhouses. A General Property policies provide insurance for other residential and commercial buildings. A Both provide flood insurance on contents, if you have purchased this optional coverage.
Flood insurance premiums are calculated based on factors such as:
Year of building construction
Number of floors
The location of its contents
Its flood risk (i.e. its flood zone)
The location of the lowest floor in relation to the elevation requirement on the flood map (in newer buildings only)
The deductible you choose and the amount of building and contents coverage
If your home is in a high-risk flood area and you have obtained a mortgage through a federally regulated or insured lender, you are required to purchase a flood insurance policy.
Flood insurance is also available for renters and business owners.