Your homeowners insurance covers many hazards. Flooding typically isn't one of them. Also, many people believe federal disaster assistance will cover them. Not always! The President must first declare a flood a federal disaster; any assistance you receive is usually a loan that has to be repaid with interest.
That's why you may need flood insurance. The National Flood Insurance Program was created by Congress in response to the rising cost of disaster relief for flood victims, and for more than 40 years it has provided protection for millions of families. About 100 private insurance companies nationally offer flood insurance backed by the federal government. Policies are available to homeowners, condo owners, apartment owners, renters and business owners.
Typically, there's a 30-day waiting period from the date of purchase before the policy goes into effect. If your lender requires flood insurance when making, increasing, extending or renewing a loan on a building in a high-risk area, there is no waiting period. There is a one-day waiting period when a revised flood map is issued.
The cost of your premium is determined by your level of risk, how much coverage you choose, your deductible, and the age, elevation and type of building. The average premium for a residential flood insurance policy is less than $2 a day. If you live in a single-family dwelling outside of a mapped high-risk area, your premiums could be even lower.
Flood insurance protects two types of insurable property: building and contents.
- The insured building and its foundation
- The electrical and plumbing system
- Central air conditioning equipment, furnaces and water heaters
- Refrigerators, cooking stoves and built-in appliances such as dishwashers
- Permanently installed carpeting over unfinished flooring
Contents coverage includes:
- Clothing, furniture and electronic equipment
- Portable and window air conditioners
- Portable microwaves and dishwashers
- Carpeting that is not already included in property coverage
- Clothing washer and dryers
Contact us for more information.