Flood Insurance is one of the trickiest insurances to understand. There is a huge misconception about who needs Flood Insurance and who does not. Also, confusion around what is a flood zone, and where to even purchase a Flood Insurance policy. Given that the topic of Flood Insurance is very important to understand, it was necessary to put together a Flood Insurance Question & Answer list.
Q1: Does my Homeowner’s Insurance policy cover me for floods?
A1: Your Homeowner’s Insurance policy will cover an appliance malfunctioning that causes “flood damage” within your home. However, your homeowner’s insurance policy will not cover a “real” flood being that of an “Act of God.” Only an insurance policy that is specifically tailored for floods will cover an “Act of God”.
Q2: Won’t Federal Assistance cover my damages if my home is flooded?
A2: Yes and No. There is flood assistance from the federal government that does help out. However, the coverage they will provide comes in the form of a financial loan to cover the impacts of a major flood damage. It will not compensate you for your losses. Also, the President of the United States must first declare your area a natural disaster zone for those low-interest bearing loans to be granted. If you receive a loan, it will have to be repaid through your mortgage repayments.
Q3: Am I even eligible for Flood Insurance?
A3: Yes, if you live in an area that is a participant in the National Flood Insurance Program (NFIP). If so, you would qualify for Flood Insurance. Your insurance agent will know this information. You can also click the link at the bottom for more information.
Q4: Can renters get Flood Insurance?
A4: If your rented home is a member of the NFIP, you can get the insurance coverage to protect your personal items in the event of a flood.
Q5: Why am I required to buy Flood Insurance?
A5: The purchase of Flood Insurance is required by federal law. This requirement goes for any federal related financial assistance for the purchase or the construction of a new building or house in a high-risk flood area.
Q6: I’m not in a high-risk area, can I get Flood Insurance?
A6: Yes, you can still purchase Flood Insurance to be safe. However, the same rules still apply to you. Your community must be registered in the NFIP before a policy can be sold to you.
Q7: Whom do I contact to purchase a Flood Insurance policy?
A7: The Federal Emergency Management Agency (F.E.M.A) has put together a comprehensive list of private Flood Insurance carriers that can assist you in getting a policy to protect your home. Here is the link.
Q8: How much does Flood Insurance cost?
A8: With Flood Insurance, there isn’t really a rule-of-thumb to find out this information. There are a lot of factors at play, but if you use one of the private insurance agencies, they can ask you the right questions and give you a Flood Insurance quote.
Q9: What is a Flood Zone?
A9: F.E.M.A has identified areas all over the nation that they have classified as flood zones. These zones are areas that have a high risk of flooding based on geographical location. Also, whether you live in the flat plains of Kansas or Oklahoma or the “bowl shaped” New Orleans, everyone is considered to live in a flood zone. It is all just a matter if you live in a high risk or a low-risk area. For more information, click here.