Since standard homeowners insurance doesn’t cover flooding, it’s important to have protection from the floods associated with hurricanes, tropical storms, heavy rains and other conditions that impact the U.S.
In 1968, Congress created the National Flood Insurance Program (NFIP) to help provide a means for property owners to protect themselves
financially. The NFIP offers flood insurance to homeowners, renters and business owners if their community participates in the NFIP. Participating communities agree to adopt and enforce ordinances that meet or exceed FEMA requirements to reduce the risk of flooding.
As defined by NFIP:
Flood – A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is the policyholder’s property) from one of the following:
Overflow of inland or tidal waters
Unusual and rapid accumulation or runoff of surface waters from any source
Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above
Did you know?
In the past five years, all 50 states have experienced floods or flash floods.
If you live in a Special Flood Hazard Area (SFHA) or high-risk area and have a federally backed mortgage, your mortgage lender requires you to have flood insurance.
If you are not in a Special Flood Hazard Area or high-risk area, homes and businesses may qualify for the low-cost Preferred Risk Policy, with premiums starting as low as $129 for a home and its contents and $643 for a commercial building and its contents.
Just a few inches of water from a flood can cause tens of thousands of dollars in damage.
New land development can increase flood risk, especially if the construction changes natural runoff paths.
In most cases, it takes 30 days after purchase for a policy to take effect, so it’s important to buy insurance before the storm approaches and the floodwaters start to rise.
In a high-risk area, your home is more likely to be damaged by flood than by fire.
The amount of coverage for your contents and building is limited by the NFIP. If your home exceeds these limits you may be able to obtain excess flood insurance from the regular insurance company marketplace.
Contact WTM to determine if your home or business is located in a special hazard or high-risk flood zone. If so, we can go over the process of applying for this important coverage.