Flood damage is not covered by typical homeowner’s insurance policies, which means that you have to buy it separately if you want coverage for flooding. Flooding can happen anywhere, regardless of your proximity to a body of water. Just one inch of water can cause up to $25,000 in damage on average. [1]
Where can Flooding occur?
Flooding occurs in every U.S. state and territory, and is a threat experienced anywhere in the world that receives rain. In the U.S. floods kill more people each year than tornadoes, hurricanes, or lightning, and 90% of natural disasters in the U.S. involve flooding. [2]
Flooding can occur from many sources:
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Heavy rains and flash-flooding
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Storm surge
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Rivers or streams becoming blocked and overflowing
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Lack of drainage or impermeable surfaces
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Changes in terrain and erosion
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Failure of levee systems, dams, or reservoirs
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Snow or Ice melting quickly
Why Should I Buy Flood Insurance if I’m not in a Flood Zone?
Technically, everyone is in a flood zone. When people say they aren’t in a flood zone, they really mean that they are in a B, C, or X zone, which are moderate- to low-risk zones – but low risk doesn’t mean no risk.
Just because you aren’t required by your mortgage to carry flood insurance does not mean that you can’t flood.
In fact, low-risk areas account for more than 20% of NFIP claims and receive 1/3 of federal disaster assistance for flooding. [3]
How much coverage can I get?
Homeowner’s can buy up to $250,000 for building coverage and $100,000 for your contents.
Flood policies are more limited than homeowner’s policies, so they do not cover loss of use and may provide ACV [actual cash value] coverage rather than replacement cost for your contents.
If you need higher limits or broader coverage provisions, there may be private markets or excess flood coverage available.
What Else Should I Know?
If you want to buy flood coverage, it is important to know that there is a standard 30 day wait for coverage to go into effect.
This means that if you purchase a policy on June 1st, your coverage would be active starting on July 1st.
Don’t wait until heavy rains are approaching to protect your home!
