What Is Flood Insurance?
Flood insurance helps pay to repair or replace your home, including your belongings, in the event they are damaged by a flood.
Home insurance does not cover flooding, but typically does cover water damage due to plumbing and, depending on the policy, overflow (from a stream, drain, or sewer). To get flood coverage, you must purchase a separate flood insurance policy.
Keep in mind that even a few inches of flooding can be financially devastating. If you live in a flood zone, or an area prone to flooding, it is recommended to purchase flood insurance. It may even be required by law.
Even if it is not legally required for your home, it is recommended that all homeowners consider their flood-risk factors. For instance, does your area regularly experience heavy rainfall or snowfall, or do you live near a creek, pond or major river that could overflow? Has the area flooded before? If any of this applies to your location, flood insurance can make good financial sense.
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How Can I Get Flood Insurance?
You can purchase flood insurance through the National Flood Insurance Program (NFIP).
Depending on where you live, or the value of your home, you may be able purchase directly through an insurance company as well.
Flood Insurance from the NFIP
The NFIP was created by the Federal Emergency Management Agency (FEMA). The mission of the program is to help minimize the social and economic impact of floods. With the NFIP, over 50 private insurance companies are required by FEMA to sell flood insurance to homeowners if they live in a flood zone. FEMA has declared over 23,000 areas as a high-risk flood zone.
To purchase through the NFIP, and to see if your home is in a FEMA high-risk flood zone, you can visit FloodSmart.gov to learn more. Please note that if you do live in a designated flood zone and purchased your home with a government-backed mortgage, such as an FHA loan, you may be legally required to buy flood insurance.
Flood Insurance from Insurance Companies
You can also purchase flood insurance directly from an insurance company.
If the structure of your home is valued over $250,000, and your belongings are valued above $100,000, you may be eligible to purchase additional flood coverage directly from an insurance company. The reason is that the NFIP coverage limits are $250,000 for dwelling coverage and $100,000 for personal property.
You may also be eligible to purchase flood insurance directly through an insurance company if you live an area that is not served by the NFIP.
If you are comparing home insurance quotes, you can ask your agent about the best way to purchase flood insurance in your area.
Now that you have an idea about flood insurance, shop home insurance quotes from top companies with CompareHomeInsuranceQuotes.com!