Flood Insurance Basics

Flood Insurance Basics


Each year flooding causes an average of $43,000 per claim and over $3.5 Billion total in claims.  Homeowners insurance does not cover flooding, so it is important to consider flood insurance to help protect you from water damage.  Here are the flood insurance basics that you should know.

What is Flood Insurance?

Flood insurance helps protect a property owner from water damage to their building’s structure and contents.

Do I need Flood Insurance?

Homeowners insurance does not cover flooding.  To have protection against damages caused by floods, you will need to have flood insurance.  Whether or not you need flood insurance depends largely on where you live.  If you live in a high-risk zone, your mortgage company may require you to have flood insurance.  If you do not live in a high-risk area, then it may not be mandatory.  However, you should still consider getting some coverage because the damage caused by flooding could be catastrophic.  Click here to see how much risk you are exposed to in your area.


What types of flood insurance are there?

Standard Flood Insurance Policy – This is the policy that you’ll need to get if your building is in a high-risk area.  The rates are calculated on a variety of factors including elevation and the building construction.
Preferred Risk Flood Insurance Policy – This is optional coverage for those who wish to have coverage but are not mandated to have it.
Excess Flood Insurance Policy – This policy allows you toad additional flood insurance coverage if your other policies do not offer enough.


How much coverage do I need?

The amount of coverage you need will depend on your individual situation.  The most common coverage provides $250,000 for the building and $100,000 for your personal property inside.  However, we recommend speaking to an agent to help you determine the coverage and policy you need.  You can also get a quote online.

Are there any discounts?

You may be eligible for a discount if your community participates in a Community Rating System (CRS).  Or, if you live in a newer home with lower flood risk, you may be able to get an insurance discount.  You can also save money on your flood insurance if you lower your home’s risk of flooding.  This will lower your premium and save some money.  Click here to see how to save money on your flood insurance.


More questions?

If you have more questions, we’ve got you covered.  Head over to our Flood Insurance FAQ page.  If you still have questions or concerns, call us at 888.754.8299. An agent will be happy to help!

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