You don’t have to live in a flood-prone area to encounter flooding in your home. This can happen at any time to anyone! Flooding can be caused by more than just big natural disasters, and it is important to remember that your standard Homeowners policy excludes damage caused by a flood. To be properly protected against flood-related damage, you need a separate Flood Insurance policy.
Although Flood Insurance is typically required by your mortgage lender if your home is located in a higher-risk flood zone, anyone may purchase a Flood policy. There are two coverage sources available — the National Flood Insurance Program and private Flood Insurance.
The National Flood Insurance Program (NFIP) is promulgated by FEMA and backed by the federal government, but the policies themselves are typically written, billed and administered by individual insurance companies under what is known as the “Write Your Own” program. If you are located in one of the 21,000 communities that participate in the NFIP, you should be eligible for both Building and Personal Property coverage. Building property coverage is “replacement cost value” coverage. This means that building property coverage covers the cost to repair or replace your home up to a maximum of $250,000. Personal Property coverage provides up to $100,000 in coverage for your personal belongings (furniture, furnishings, electronics, appliances, clothing, etc., etc.) damaged in a flood.
The other type of coverage is private Flood Insurance, which, as the name suggests, is offered directly by insurance companies such as Lloyd’s of London and others, outside of the NFIP and not backed by the government. These companies have the ability to set their own rates, but the coverage terms typically comport with that which is offered through the NFIP. Private Flood coverage is available either instead of or in addition to NFIP coverage, as private coverage does not contain the same $250,000 Building and $100,000 Personal Property limit maximums.
Whether your mortgage requires it or you would just like more information and a quote to provide peace of mind, contact Atchue Insurance anytime to discuss the type of Flood Insurance that is right for you.
- Just one inch of water can cause more than $20,000 in damage.
- It takes just six inches of fast-moving water to sweep an adult off their feet and 12 inches of water to sweep a car away.
- Flash floods typically carry water between 10 and 20 feet high.
- If you live in a 100-year flood plain, your home has a 1% chance of flooding each year.
- Moving water at 10 mph carries the same pressure as wind blowing at 270 mph.
- If your home is in a flood plain and you have a federally backed mortgage, you are required by law to carry flood insurance.