Flood insurance is required in designated U.S. flood zones.
According to the Consumer Reports website, flood insurance will cost you anywhere from a few extra hundred to several thousand dollars per year, depending on your location and risk factors, but the rewards and peace of mind may be worth it. If you live in a part of the country that requires flood insurance, it's important to know how much you need and where to obtain a policy.
In the Zone
In the U.S., approximately five million homes are in a Federal Emergency Management Agency-designated flood zone. If your home is added to a flood zone list or you want to purchase a home already in a flood zone, you are legally obligated to purchase flood insurance coverage from the National Flood Insurance Program (NFIP). For homes that are not in designated flood zones but still have some risk of flooding, the NFIP recommends flood insurance as a supplemental plan to your regular homeowner's insurance. Flood insurance plans are not just for homeowners; any residential or commercial renter, homeowner or condo owner can purchase a policy.
Determining Your Flood Zone Status
Checking your home's flood zone status is as easy as typing your home address into a national database available on the FEMA Map Service Center website. The website also provides instant flood zone information and insurance coverage requirements and rates.
Does it Float Your Boat?
The decision to purchase flood insurance in a non-designated flood zone is often budgetary as many homeowners and renters may not be able to afford the premiums for the extra coverage. However, the NFIP website reports that from the years 2000 through 2010, the average flood damage claim equaled $33,000 per flood, which can take a devastating chunk out of your savings if your home or apartment is not covered. Another staggering statistic, reported by the website Consumer Reports, found that in any given year, a quarter of the homes deemed a total flood loss were in low to moderate flood zones that did not require NFIP flood coverage at all. Before turning down the extra coverage, talk to your local NFIP insurer to determine your home's risk factors for floods.
Finding Coverage
Being told that you need flood insurance can be a huge shock for new homeowners, especially those that thought their homeowner's insurance would cover flood protection. Most homeowners' insurance policies will cover some wind and tornado damage, but flooding due to storms is usually excluded. Flood insurance can only be purchased through the NFIP, which provides approximately 90 NFIP-certified insurance brokers across the country. The NFIP website offers rate quotes and a listing of local insurance partners.
Tags: your home, flood insurance, flood zone, flood zone, flood zones
