Flood Insurance, When do I need it, and why should I have it?


With all of the recent hurricanes, coastal flooding’s and inland floods that have occurred, the subject of flood insurance has come to the forefront of people’s minds. Flood insurance is a coverage that most do not carry, and quite frankly have not had to deal with if their is not in a flood plain.  That being said,  if your home is in a high-risk flood area and you have obtained a mortgage through a federally regulated or insured lender, you will be required to purchase a flood insurance policy.

Standard homeowners insurance policies do not cover “flooding” so it is 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 financially protect themselves. 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. (floodsmart.gov)

Flood insurance premiums are calculated by:

–       The year of building construction

–       Building occupancy

–       Number of floorsncy

–       Location of  its contents

–       The location of the lowest floor in relation to the elevation requirements on the flood map ( in newer buildings only)

–       The deductible you choose and the amount of building and contents coverage

Items that are covered would be:


–       The insured building and foundation

–       Electrical and plumbing systems

–       Central air conditioning equipment, furnaces and water heater

–       Refrigerator, stoves and built in appliances such as dishwashers

–       Permanently installed carpeting over unfinished flooring

–       Permanently installed paneling, wallboard, bookcases and cabinets

–       Window blinds

–       Detached garages (up to 10% of building property coverage); detached buildings( other than garages) require separate building property policy

–       Debris removal

For more information on flood insurance and your options you can give us a call, or you can check out Floodsmart.gov – this site goes into more detail and you will also be able to find more information regarding the National Flood Insurance Program.