Flood insurance is one of the more commonly misunderstood insurance coverages. Many homeowners assume that if they have a homeowner’s insurance policy, then they’re covered from all water damage that could occur to their home. This is not true.
According to FEMA, flood claims occurred in every state in our country with the average claim cost in excess of $31,000. Just because your property doesn’t sit next to a stream, river or other body of water doesn’t mean you won’t be impacted. Heavy rains can overwhelm drainage systems, run-off from hillsides can seep into your basements and levees can fail
Flood insurance is not typically included in standard home insurance policies – it requires a separate policy altogether.
Only you can decide whether having flood insurance is right for you. While it is mostly optional (unless you live in a high flood prone area and your mortgage carrier requires it), it may help save you thousands of dollars in expenses.
Here are some common questions answered about flood insurance to help you decide if this coverage is right for you.
Where Can Flood Insurance Be Purchased From?
Most places you purchase home insurance from will also offer you an option for flood insurance. Flood insurance can be purchased easily from your local independent insurance agent – including us!
Is Flood Insurance Expensive?
Flood insurance prices will vary depending on many factors. Those factors can include:
- Value of your home
- Location of your home (is it likely to flood – near rivers, streams, swamps etc.)
- Primary or secondary residences
- Basements
- & more.
If you want to get a general idea, we can quickly provide you with a quote or you can go to FEMAs website and look up your home address and assess your risk. The quickest way to understand your risk and get a quote would be to contact our agency.
Doesn’t FEMA Cover My Flood Loss?
In order for FEMA to step in and help, the President of the United States must declare a FEMA emergency. This is done in roughly 50 percent of major floods (according to FEMA.GOV). Even then, the assistance provided is a low interest loan that needs to be repaid. This is not free money given out.
A Pipe Broke In My House, Do I need Flood Insurance?
No. A broken pipe in your home is not what flood insurance is for. This would be covered by your standard home insurance policy.
My Sewer Backed Up Into My Home, Is This Flood Insurance?
No, unless the sewer backed up clearly because of a flood and rising flood waters. There is a coverage available called Water & Sewer Backup coverage. You may ask your agent about this and what it covers.
Learn more
Should I have an umbrella insurance policy?
What to do in case of flood damage
If you do experience a flood claim and have flood insurance, keep these things in mind:
- Report your claim as soon as possible and have open and frequent communication with your insurance adjuster.
- Photograph your damages (great if you have before pictures also saved to the cloud, not on a computer hard drive). Your insurance company will likely come out and photograph the damages as well.
- Keep a list of all of the items you lost in the flood. Receipts are great as well as lists.
- Take a read through your policy to ensure you understand your rights and coverage.
Other things to keep in mind with flood insurance
Fire & water can create floods
Do you live in or have property located in an area that recently had wildfires? Trees suck up so much water when they are alive. If these trees die off, this creates excess runoff in areas not typically prone to flooding. This can increase your chances of being involved in a flood.
Flood insurance and sewer backup insurance – Not the same thing
Many people think flood insurance is anything to do with water in their home. This is far from the truth. Floods are defined as surface water that enters your home from the outside – not to be confused with a leaky roof or a broken pipe, loose toilet or other plumbing related issue. Another issue altogether is sewer backup with may or may not be covered depending on what caused it to occur.
Read more about sewer and service line coverage here:
If you’re considering purchasing flood insurance, we can help. Flood insurance isn’t necessarily expensive. If you happen to live in a flood plain or near a body of water, chances are you’re likely going to pay a hefty sum. If you live away from typical flood areas, your premiums can be much more reasonable. Considering the average cost of a flood claim, it isn’t a bad idea to assess your risk.
If flood insurance is on your mind lately, give us a call.
