Floods are the most common natural disaster in the United States. They are also one of the most expensive. For example, just 1 inch of floodwater can cause $25,000 worth of damage to your home or business.
What is flood insurance?
Flood insurance covers a dwelling for losses sustained by water damage caused by flooding. Floods can be caused by heavy rain, melted snow, coastal storm surges, and more. Flood insurance can cover the property’s structure and/or its contents.
What is the National Flood Insurance Program (NFIP)?
The Federal Emergency Management Agency (FEMA) manages the National Flood Insurance Program (NFIP), which offers flood insurance to participating communities as an alternative to disaster assistance. Insurance companies issue the policies.
Am I required to have flood insurance?
Flood insurance is not required by federal law. However, if you live in a high-risk zone, mortgage providers may require it as a condition of your loan. If you live in a high-risk zone, then you have a 1 in 4 chance of experiencing a flooding event during a 30-year mortgage. This likelihood is why most lenders require you to have flood insurance.
What if I live in a Moderate to Low-risk area?
Lenders may not require people who live in moderate to low-risk areas to have flood insurance. However, it may be a good idea. For example, 25% to 35% of all flood insurance claims each year occur outside of high-risk flood zones. Fortunately, flood insurance for low-risk areas is often more affordable, making it worth considering for the peace of mind it brings.
Floods can be a disastrous event for homeowners. Make sure you are protected ahead of time. Contact one of our experienced agents today at 410-742-5111 to learn more about our flood insurance options.