Flood insurance is a type of property insurance that can cover your building and its contents if damaged or destroyed due to a flood caused by heavy rain, storm surges, blocked storm drainage systems, or levee dam failure. While not every homeowner needs flood insurance, it may be a wise investment regardless of where you live. According to The Federal Emergency Management Agency (FEMA), more than 25% of homeowners who have filed a flood damage claim do not even live in a flood zone.
Flood insurance offers a range of options. Private flood insurance:
You will need flood insurance if you live in a designated flood zone. But flooding can also occur in inland areas and away from major rivers. Consider buying a flood insurance policy if your house could be flooded by melting snow, an overflowing creek or pond, or water running down a steep hill.
Flood insurance is available for renters and homeowners, but, like earthquake insurance, it is not part of standard homeowners coverage. Instead, flood policies are provided separately by the federal government and dozens of private insurers.
If you think you need flood insurance, don’t wait for a flood season warning on the evening news to buy a policy. There is a 30-day waiting period before the coverage takes effect for National Flood Insurance Program policies.