Flood Insurance

It’s terrible to need flood insurance and not have it. Most people don’t realize that homeowners insurance doesn’t cover flood damage. If you live in an area that is prone to floods, then you should have flood insurance.

Flood insurance is available for homeowners, condo owners, renters, commercial renters and commercial businesses. Coverage is for the buildings and personal contents of the owner. Some things are not covered, so you should learn the specifics before buying the policy. Coverage for basements or spaces beneath a building may be limited.  And outside locations such as swimming pools might not be covered unless special arrangements are made.

This type of policy is for people who live in flood zones or areas that experience mudslides, broken water mains, heavy rainfall or snowmelt. That’s why the policies are divided into moderate-to-low risk and high risk. Coverage costs more if you live in a high-risk area.

Insurance premiums are based on the year the building was constructed, if it is in a flood zone, the number of floors and where its contents are located. It also depends on how much coverage you want and the amount of your deductible. A lender will require you to have this coverage if you need a mortgage.

FEMA offers insurance through the National Flood Insurance Program (NFIP). It is designed to offer financial assistance to people who suffer flood damage.