Floods are one of the most frequent natural disasters which can impact anyone, anywhere, at any time. Since standard insurance policies do not typically cover flooding, it is important to be prepared by protecting your home with valuable personal flood insurance.
Is Flood Insurance only Available to Homeowners?
No! Flood insurance is available to protect owners and renters of homes, condominiums, apartments and nonresidential buildings, including commercial structures.
Do I need Flood Insurance?
Under the National Flood Insurance Act, mortgage lenders must require borrowers whose property is located within a Special Flood Hazard Area to purchase flood insurance as a condition of receiving a federal regulated mortgage loan. If your property is not subject to a mortgage, then you are not required to purchase flood insurance; however if you live in a high-risk area it is always better to protect yourself if a flood were to occur.
Can I Purchase Flood Insurance if I am Not Located in a High-Risk Flood Area?
Yes! Even if you live in an area that is not flood-prone, it is advisable to have flood insurance.
What Does Flood Insurance Cover?
Most flood policies, even if they are purchased through a private insurance company, are underwritten by the National Flood Insurance Program. These policies feature two standard types of coverage:
- Building Coverage: Pays for damage to things like electrical and plumbing systems, water heaters, furnaces, foundation walls, built-in appliances and permanently installed cabinets.
- Contents Coverage: Pays for damage to items including but not limited to clothing, furniture, artwork, curtains, washers, and dryers.