How Insurance Works to Keep You Afloat After a Flood

A photo montage of a living room with white-capped ocean waves inside and a framed waterfall picture with water pouring into the living room.
Image by Pete Linforth from Pixabay

“April showers bring May flowers.” It’s a reminder of the beauty of spring to come despite the wet weather. It is a cute phrase. It doesn’t mention that the showers also may bring floods.

It is important to know that your homeowner’s policy does not cover flood damage. To get this coverage you must buy a separate flood policy from your local insurance agent like us.

This policy is underwritten by the National Flood Insurance Program. It is a single peril policy that only provides flood coverage on an actual cash value basis. There is no coverage for resulting mold or mildew.

What exactly is a flood?

The policy from the National Flood Insurance Program defines a flood this way:

“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, from unusual and rapid accumulation or runoff of surface waters from any source.”

How are flood insurance premiums determined?

The likely hood that your property floods will determine flood insurance premiums.

The Federal Emergency Management Agency (FEMA) has mapped the United States for flooding. Their mapping has determined which areas are the most likely to flood.

If you property is in a high hazard zone, then insurance premiums will be higher. If your property is in a high hazard zone, then the bank or mortgage lender may mandate you get flood insurance. It is to protect their interest in the loan.

Learn more about your options as they pertain to flood insurance by contacting us today. We’re happy to help, or you can visit the National Flood Insurance Program’s website.

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