Floods are among the deadliest and costliest of common natural disasters. From growing populations in flood-prone areas to the impacts of climate change, the frequency and intensity of flooding events are on the rise. It is important to know that most homeowner and renter insurance does not include coverage for flooding. Without adequately preparing for a flood, homeowners could grapple with high costs and complicated processes.

Benefits of Flood Insurance

The benefits of flood insurance extend beyond meeting compliance requirements. It can provide the following:

• Financial protection: less financial burden from the costly damages caused by flooding, whether for structural damage or losses
• Risk mitigation: flooding is unpredictable and can occur almost anywhere – covering this exposure mitigates significant financial losses and helps you navigate the process
• Peace of mind: the knowledge that your property and belongings are protected in the event of a flood, regardless of it being a declared federal disaster
• Resilience and recovery: flood insurance helps facilitate resilience and a quicker recovery, allowing property owners to rebuild and repair their properties without severe financial hardship and insight from a broker

What Does it Cover?

• Structural damage: includes walls, floors, foundation and roofing
• Personal property damage: covers personal belongings, such as furniture, electronics, appliances and other valuables
• Electrical and plumbing systems: for damage to electrical and plumbing systems in the home/building, including wiring, outlets, circuit breakers and pipes
• HVAC systems: heating, ventilation and air conditioning (HVAC) systems are protected, including damage to heating units, air conditioners, ductwork and related components
• Detached structures: includes garages, sheds, fences or other outbuildings susceptible to flood damage
• Cleanup and restoration: may cover the costs associated with rebuilding and restoring after a flood, including debris removal, mold remediation and other necessary repairs

Know Your Risk Control

Understanding your risk level is one of the first steps. High-risk areas have a 1% chance of flooding each year. Homeowners in these areas with mortgages from federally regulated or insured lenders are required to buy flood insurance. Moderate to low-risk areas have less than a 1% chance of flooding each year, but it is still possible for the area to flood. Some mortgage lenders will still require flood insurance in non-high-risk areas. Undetermined risk areas are areas where flood-hazard analysis has yet to be conducted.

Flood insurance remains a critical piece of risk management efforts to safeguard your property and help protect your home, family and future.

Personal Insurance Team