Do You Need Flood Insurance?

Did you know that floods are the most common form of a natural disaster? Floods cause over $4 billion dollars in damages every year. Here is another amazing fact; the average homeowner has a 1 in 4 chance of having flood damage during the time frame of a 30-year mortgage.

If your home is in a flood zone, you must buy flood insurance if you want the government to help you after a flood. If you wait until after the flood, you will not be able to obtain the insurance. Here are some common misconceptions about flood insurance:

“Flood insurance is expensive.”

Flood insurance is not always expensive. Premiums depend on your location.

“Only people in high-risk areas need flood insurance.”

Flood insurance is available to homeowners, renters, condominiums, and businesses. The best way to learn more is to call your insurance agent or go to

“Flood insurance is part of my homeowner’s insurance.”

Homeowner insurance policies do not normally cover flood damage. That is why the Federal Government backs the National Flood Insurance Program. You can purchase Federal flood insurance through an insurance agent or company. The average cost of a flood policy is about $700 per year.

“Floods generally don’t cause much damage.”

Just five inches of water can cause over $25,000 worth of damage.

“The NFIP does not offer any type of basement coverage.”

Yes, it does. A basement, as defined by NFIP, is any building area with a floor below ground level on all sides.

“Flood insurance covers everything.”

While flood insurance covers a lot of the damage to property and possessions, it does have limitations like mold, septic systems, vehicles, fences, and swimming pools.