Flood Insurance and Why You Need It

It’s the rainy season, and the Eastern Seaboard is seeing plenty of hurricanes and tropical storms. Even if you don’t live in a place affected by hurricanes, you’ll still experience the effects of them. It’s important to be sure you get flood insurance, and we’ll tell you why!

Why You Need It

Flooding is unpredictable and can happen even if you’re not by the sea–whether living near a lake or living in a valley, anyone can be effected by flooding. Because floods can be so unpredictable, it can be hard for homeowners to tell whether they’ll need coverage for it. As the Federal Emergency Management Agency (FEMA) points out, flooding is the number one natural disaster in the United States. FEMA.gov also points out that home owners that do not live in high-risk flooding areas file 20% of all National Flood Insurance Program (NFIP) claims–these homeowners will also receive approximately one-third of federal funds.

How to Get It

The most important thing to be aware of is that flood insurance is not included with your homeowners’ or renters’ policy. You must purchase it from the federal government through your insurance agency. When protecting your home from flood damage through an insurance policy, note that there are two separate parts: A policy to protect the structure of the home, and a policy to protect the contents and belongings. 

But don’t worry: Flood insurance is generally inexpensive. A premium may be $470-$700 per year, which will provide $200,000-$250,000 in structural coverage and approximately $80,000 for the contents of the home. However, remember that when purchasing flood insurance there will be a 30-day waiting period before coverage takes effect, so be sure you’re covered well before the start of the rainy season. In the United States, that season runs from July to November. 

Quick Facts

• 90% of all natural disasters in the United States involve flooding or some type of flood damage
• 20% of all flood claims are filed in low/moderate flood risk areas
• Floods include: inland flooding, flash floods and floods from seasonal storms
• Flood insurance covers: 
  • A home and the foundation
  • A building and the foundation 
  • Electrical and plumbing systems
  • Air conditioning equipment, furnaces, and heaters
  • Appliances, such as washer & dryer, refrigerator, and stoves
  • Personal possessions such as clothing, furniture, and electronic equipment 

The cost of flood insurance is nothing compared to the cost of repairs and to replace damaged belongings when it’s too late. In the end, it’s just the smart thing to do!