Home Flood Insurance

If you have a flood insurance policy, you can be reimbursed for all your covered losses, even if a disaster is not federally declared. In contrast, federal disaster assistance is often a loan – repayable in full – with interest.

With a flood insurance policy, all you have to pay is one annual premium. Then, if you suffer losses due to flooding, you will be reimbursed for your covered losses, and you’ll never have to pay a nickel back. Flood insurance is affordable. The average flood insurance premium costs a little over $400 a year for an average of $100,000 of coverage. And of course, if you are not insured, and a Federal disaster is not declared, your home and belongings may be ruined with no hope for recovery.

Flood insurance is excluded under homeowners and renters policies, but it is covered under the comprehensive section of standard automobile insurance policies and some coverage is available for floods under special commercial insurance policies.

Flood insurance for homeowners, renters and businesses is administered through the federal government and can be purchased from an insurance agent or company under contract with the Federal Insurance Administration (FIA), part of the Federal Emergency Management Agency (FEMA). Flood insurance is only available where the local government has adopted adequate flood plain management regulations under the National Flood Insurance Program (NFIP). Most communities participate in the program.

Flood insurance covers direct physical losses by flood and losses resulting from flood-related erosion caused by waves or currents of water exceeding anticipated cyclical levels and accompanies a sever storm, flash flood, abnormal tide surge or a similar situation which results in flooding. Flood insurance also may cover mudslides.

Tips for Preparing for and Surviving a Flood