Your home is the most important investment you’ll ever make and the right insurance coverage will help you maintain your investment for years to come. The last thing you want to do is file an insurance claim and find out that the things you assumed were covered are not. We have found that many people assume flood damage is covered by their homeowners policy – but it is not! Make sure you have the right coverage for your home, including flood insurance to cover damage that may occur.
All areas are risk areas for flood
All areas are considered risk areas for flood – the difference is that some areas have been designated as high risk by FEMA and require mandatory flood insurance, while others are low risk and do not require flood insurance. Low risk flood areas vary greatly in their capacity for risk, but for the most part flood insurance rates are quite low.
High Risk Areas
If you live in a high risk area or Special Flood Hazard Area as determined by FEMA, flood insurance is mandatory if your mortgage is through a federally regulated or insured lender. High risk areas are typically floodplains or areas that can be affected by coastal storm surges. You can find out if you are in a high risk area by checking the Flood Insurance Rate Map for your property. These maps change and are continually updated, your property can be mapped in or mapped out at any time. It is possible to question the determination of your home as being in a high risk area, Floodsmart.gov gives up to date information on how to do this. Your insurance agent will calculate your flood premium based on:
- The year your home was built
- How many people live in your home
- How many floors are in your house
- Where are your possessions located in the home, do you have a finished basement containing valuables, for example?
- The location of the lowest flood in relation to the elevation requirement on the flood map for your area
- The deductible and amount of building and contents coverage
Low Risk Areas
As we mentioned, all areas are risk areas for flood, but if your home has been determined as moderate-to-low-risk or Preferred Risk your flood insurance is not mandatory. Flood insurance for a Prefered Risk Policy (PRP) can be quite inexpensive, and gives much protection should flood occur. Since 1 in 4 flood insurance claims to the National Flood Insurance Program come from people outside of high risk areas, it is recommended that even those in low-to-moderate risk areas protect themselves financially against flood damage.
Talk to a professional
This brief article only skims the surface of what you need to know about flood insurance. Our InsuraMatch agents spend each and every day helping consumers with their flood insurance needs, and they are trained in every aspect of flood insurance. Our pros can help you understand and choose a coverage that fits your unique situation; they are independent agents which means they will offer alternatives plus have the expertise to know where you can get the best value. Call for your free coverage evaluation at 844-232-2700 or schedule a call at your convenience.