Flood insurance, like earthquake insurance, is “single peril” insurance, sold separately from homeowners insurance. Flood insurance protects against losses to buildings and their contents, not the land surrounding them. The coverage applies whether the flooding results from heavy or prolonged rains, coastal storm surge, snow melt, blocked storm drainage systems, levee dam failure, or other causes. To be considered a flood, the waters must cover at least two acres or affect at least two properties.

Flood insurance is available both within and outside of floodplains. Your property’s flood risk is shown on flood hazard maps. Different types of policies are available depending on your flood risk.

If you live in a high-risk area, you will need a Standard Policy. Most mortgage lenders will require that you have such a policy before they will approve your loan.

Outside of high-risk areas, flood insurance is also available, usually at lower cost. A Preferred Risk Policy covers both a home and its contents, with premiums as low as $119 per year. While you aren’t federally required to have flood insurance in a low-to-moderate risk area, that does not mean you won’t ever need it. Large floods often extend beyond the boundaries of high-risk areas and smaller floods occur outside high-risk areas as well. In fact, a quarter of all flood insurance claims come from low-to-moderate risk areas.
(reprinted from www.floodsmart.gov) 

General Guidelines on Flood Insurance Coverage

NOTE: The following are only guidelines on items covered and not covered by Flood insurance. Please refer to the policy for a complete list.

What is insured under Building Property coverage?

• The insured building and its foundation.

• The electrical and plumbing systems.

• Central air conditioning equipment, furnaces, and water heaters.

• Refrigerators, cooking stoves, and built-in appliances such as dishwashers.

• Permanently installed carpeting over an unfinished floor.

• Permanently installed paneling, wallboard, bookcase, and cabinets.

• Window blinds.

• Detached garages (up to 10 percent of Building Property coverage). Detached buildings (other than garages) require a separate Building Property policy.

• Debris removal.

What is insured under Personal Property coverage?

• Personal belongings such as clothing, furniture, and electronic equipment.

• Curtains.

• Portable and window air conditioners.

• Portable microwave ovens and portable dishwashers.

• Carpets not included in building coverage (see above).

• Clothes washers and dryers.

• Food freezers and the food in them.

• Certain valuable items such as original artwork and furs (up to $2,500).

Most Homeowners Insurance does NOT cover flood damage

Property coverage?

• Damage caused by moisture, mildew, or mold that could have been avoided by the property owner.

• Currency, precious metals, and valuable papers such as stock certificates.

• Property and belongings outside of a building such as trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools.

• Living expenses such as temporary housing.

• Financial losses caused by business interruption or loss of use of insured property.

• Most self-propelled vehicles such as cars, including their parts (see Section IV.5 in your policy).

Essential Flood Insurance Information

Is the Property in a Participating Community?

To obtain Flood insurance through the NFIP, the property must be located in a participating community which adopts and enforces a floodplain management ordinance.

What is a participating community? Participation in the NFIP is based on an agreement between communities and the Federal Government. If a community adopts and enforces a flood plain management ordinance to reduce future flood risk to new construction in flood plains, the Federal Government will make Flood insurance available within the community as a financial protection against flood losses.

FEMA provides the community with a Flood Insurance Rate Map (FIRM)

delineating base flood elevations and flood risk zones. This is used in local zoning and building code ordinances for that community.

Flood Zones Defined

Flood zones are geographic areas that FEMA has defined according to varying levels of flood risk. These zones are depicted on a community’s Flood Hazard Boundary Map or a Flood Insurance Rate Map (FIRM). Each zone reflects the severity or type of flooding in the area.

Frequently Asked Questions Regarding Flood Insurance

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