Flood Insurance

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Why Do I Need Flood Insurance?

Anywhere it rains, it can flood. Just because you haven’t experienced a flood in the past, doesn’t mean you won’t in the future. Flood risk isn’t just based on history, it’s also based on a number of factors: rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development.

Flood-hazard maps have been created to show different degrees of risk for your community, which help determine the cost of flood insurance. The lower the degree of risk, the lower the flood insurance premium.

Protect Your Home with Flood Insurance


The percent of U.S. counties impacted by a flood event


The average flood claim payout from the National Flood Insurance Program


The average annual flood insurance policy premium cost

Source: www.fema.gov

A flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow. Many conditions can result in a flood: hurricanes, overtopped levees, outdated or clogged drainage systems and rapid accumulation of rainfall.

A Standard Flood Insurance Policy is a single-peril (flood) policy that pays for direct physical damage to the insured property up to the replacement cost or Actual Cash Value (ACV) of the actual damages or the policy limit of liability, whichever is less.

  • Flood insurance pays the replacement cost or ACV of actual damages, up to the policy limit.
  • It is not a guaranteed replacement cost policy. A guaranteed replacement cost policy pays the cost to rebuild the home regardless of the limit of liability. Flood insurance does not pay more than the policy limit

What is covered under Building Coverage?

  • The insured building and its foundation.
  • The electrical and plumbing systems.
  • Central air-conditioning equipment, furnaces, and water heaters.
  • Refrigerators, cooking stoves, and built-in appliances such as dishwashers.
  • Permanently installed carpeting over an unfinished floor. Permanently installed paneling, wallboard, bookcases, and cabinets. Window blinds.
  • A detached garage (up to 10 percent of Building Property coverage); detached buildings (other than detached garages) require a separate Building Property policy.
  • Debris Removal

What is covered under Contents Coverage?

  • Personal belongings such as clothing, furniture, and electronic equipment.
  • Portable and window air conditioners.
  • Portable microwave ovens and portable dishwashers.
  • Carpets not included in building coverage (see above).
  • Clothes washers and dryers. Food freezers and the food in them.
  • Certain valuable items such as original artwork and furs (up to $2,500).

Most homeowners in a moderate-to-low risk area are eligible for coverage at a preferred rate. Preferred Risk Policy premiums are the lowest premiums available through the NFIP, offering building and contents coverage for one low price. Homes and businesses may qualify for the low-cost Preferred Risk Policy, with premiums starting as low as $137 for a home and its contents and $647 for a commercial building and its contents. * If you don’t qualify for a Preferred Risk Policy, a standard rated policy is still available.

*$137 residential annual premium provides $20,000 building and $8,000 contents coverage.

$647 commercial annual premium provides $50,000 building and $50,000 contents coverage.

If you live in a high-risk area, a standard rated policy is the only option for you. It offers separate building and contents coverage.

Flood insurance premiums are calculated based on factors such as:

  • Year of building construction
  • Building occupancy
  • Number of floors
  • The location of its contents
  • Its flood risk (i.e. its flood zone)
  • The location of the lowest floor in relation to the elevation requirement on the flood map (in newer buildings only)
  • The deductible you choose and the amount of building and contents coverage

If your home is in a high-risk flood area and you have obtained a mortgage through a federally regulated or insured lender, you are required to purchase a flood insurance policy

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