Flood Insurance

Floods can happen anywhere, at any time. You do not need to live near water to be flooded.

• Just a few inches of water from a flood can cause tens of thousands of dollars in damage.

• Floodwaters don’t stop at a line on a flood map. You may not be required to buy flood insurance, but your home could still be at risk for flooding.

• More than 20 percent of flood insurance claims come from people outside of mapped high-risk areas.

• Most homeowners insurance doesn’t cover floods. Only a flood insurance policy will cover flood damage. 

The National Flood Insurance Program

The National Flood Insurance Program (NFIP) is a federally-backed flood insurance system that is administered through private insurance companies. Without NFIP, many insurance companies would not offer flood insurance policies because the risk of an overwhelming number of claims is extremely high.

Flood Insurance Rate Maps

A community’s flood risk considers river flow, storm tides, rainfall, and coastal storm surge, among other factors. This information is used to create federal Flood Insurance Rate Maps (FIRMs). A FIRM illustrates the extent of flood hazards in a community by depicting flood risk zones and is used to determine the floodplain development regulations that apply in each flood risk zone and who must buy flood insurance.

A FIRM will generally show a community’s 100-year flood extent, flood elevations, flood zones, and floodplain boundaries. As a property owner/renter, you can use this map to get a reliable indication of what flood zone you’re in. However, maps are constantly being updated due to changes in geography, construction/mitigation activities, and meteorological events. Therefore, for a truly accurate determination, contact your insurance agent or company, or your community floodplain manager.

Special Flood Hazard Areas

Land areas that are at high risk for flooding are called Special Flood Hazard Areas (SFHAs) or floodplains. These areas are indicated on the Flood Insurance Rate Maps (FIRMs). There is a 26% chance that a 100-year flood will occur in an SFHA during the period of a 30-year mortgage.

Homeowners Insurance vs. Flood Insurance

Homeowners insurance does not cover flood damage. Flood insurance must be purchased as a separate policy.
If you live in an SFHA and have a federally-backed mortgage, you are required to purchase a flood insurance policy.

Flood insurance can cost as low as $129 per year for a Preferred Risk Policy, available in medium-to-low-risk areas, depending on the level of coverage chosen. Rates are based on the level of flood risk posed to the property. NFIP flood insurance is not available in certain areas designated Coastal Barrier Resources Act zones or Other Protected Areas.

Buildings and contents are typically covered by flood insurance; however, separate policies are required for high-risk flood areas. For residential buildings, maximum coverage is $250,000 for the structure and $100,000 for its contents.

Typically, there’s a 30-day waiting period from the date of purchase before your policy goes into effect. So while you may purchase flood insurance just prior to a flood, the coverage may not take effect for 30 days. Communicate with your insurance agent about the 30-day waiting period.

Talk to Your Insurance Agent about Flood Insurance

Your insurance agent is one of your best resources for getting the flood insurance policy that’s right for your home and your risk level. You should ask your insurance agent the following questions:

• What flood zone do I live in? What is my property's flood risk?

• Is flood insurance mandatory for my property? Will the lender require it?

• Even if my lender doesn’t require flood insurance, do I still need it?

• Do I qualify for a Preferred Risk Policy?

• Does my community participate in the NFIP Community Rating System (CRS)? If so, does my home qualify for a CRS rating discount?

• What will and won't be covered against flood damage?

• Will my flood insurance policy be backed by the federal government?

Elevation Certificates

Your insurance agent may ask you for an elevation certificate. This certificate verifies the elevation of the lowest floor of your house relative to the ground. It is especially important if your house/building is in a high-risk flood area. An elevation certificate is only required if your building was built, or substantially improved, after the community's initial FIRM. If your community participates in the Community Rating System, local officials may already have a copy of your home’s elevation certificate on file.