Flood Insurance

Flood Insurance covers direct physical loss caused by a flood. in simple terms, a flood is an excess of water on land that normally is dry.  It is a general and temporary condition of partial or complete inundation of two or more acres of normally dry land are or of two or more properties of at least one which is your property from:

• overflow or inland or tidal waters
• unusual and rapid accumulation or runoff of surface water from any source
• mudflow
• collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.

That depends on flood zone you live in. If your home is located in a high-risk flood zone you might not  be able to get a mortgage without purchasing flood insurance. If you are in low-risk zone you may have the option to purchase Flood Insurance.  However, There is a common misconception that low-risk flood zones are "no risk" flood zones. But, because flood maps change over time, factors like changing weather patterns or local dam improvements could cause the property your house sits on to go from a high-risk flood zone to a low-risk flood zone at any time. On the other hand, a new neighborhood going in down the street could elevate your home from a low-risk zone to a high-risk zone solely because there is no longer anywhere for excess water to go.

No, your standard home owners policy typically does not provide coverage for damage due to flooding . A separate flood insurance policy offered through the government's National Flood Insurance Program or private insurers will need to be purchased to provide coverage.

Direct physical damage to your home, its contents and your belongings by or from a flood is covered by a flood insurance policy up to $350,000. Assuming you have both policies in place, Flood insurance will cover up to $250,000 for damage to your home (Building Property Coverage) and up to $100,000 for your belongings (Personal Property Coverage).

Coverage ranges from $112 a year in lower risk areas to $1,207 in higher risk areas, with an average cost of $672. If you can’t afford your annual premium up front, you can also pay for it in monthly installments

Since flood damage is not covered under a standard homeowners policy, your lender may require you to carry a separate flood insurance policy in order to protect their investment in your home. A mortgage company does not typically require all of their homeowners to carry flood insurance- just those that are in a high-risk flood zone . So If your home is located in a high-risk flood zone your lender may not given you the option to not carry flood insurance.  

Flooding is the most common and costly natural disaster in the United States, affecting every region and state. Floods cause physical and emotional anguish, as well as financial devastation. In fact, just one inch of water in an average sized home can cause more than $25,000 in damage. 

Although federal disaster assistance is an option it is not always the answer. Most types of federal disaster assistance require a presidential disaster declaration and come in the form of low-interest disaster loans that must be repaid—with interest!

Only flood insurance reimburses you for flood damage, providing the necessary funds for recovery—and you don’t have to pay it back.

It takes 30 days for NFIP coverage to go into effect. However, there are a few exceptions, so don’t wait until the last minute to get coverage if you need it!