Flood insurance provides coverage for loss due to flooding from heavy and lengthy rainfall, storm surge, blocked storm drains, snow melt and more. Your homeowners insurance (or renters insurance) does not cover flood damage. Flood insurance is a policy separate from your regular homeowners policy, and has a separate deductible. If you live in a flood zone, your mortgage lender may require you to have flood insurance as part of the terms of the loan.
Flood insurance is backed by the government and administered by the National Flood Insurance Program (NFIP).
Different types of policies are available based on your property’s location and flood history:
Standard Flood Insurance Policies
If you live in a community that participates in the NFIP, your building and its contents can be covered by a standard insurance policy. The National Flood Insurance Program (NFIP) was established by the Federal Government to help communities who adopt and enforce ordinances that meet or exceed FEMA requirements to reduce the risk of flooding. By definition, flood waters must cover at least two acres or affect at least two properties.
Preferred Risk Flood Insurance Policies
If your home or business is in a low or moderate risk zone, your building may qualify for a low-cost preferred risk policy. While you aren’t required to purchase flood insurance in low-to-moderate risk areas, a preferred risk policy will protect your home or business and its contents if you are affected by a small flood or a larger flood that has extended into your low-risk area. Many companies claims occur in low-to-moderate risk areas. Floods can occur anywhere.