Lisa Barton

Flood Insurance covers a physical loss caused by “flood.” The National Flood Insurance Program says:

A flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow. Many conditions can result in a flood: hurricanes, broken levees, outdated or clogged drainage systems and rapid accumulation of rainfall.

Just because you haven’t experienced a flood in the past, doesn’t mean you won’t in the future. Flood risk isn’t just based on history, it’s also based on a number of factors: rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development.

Flood insurance can only be purchased through an insurance agent.  It is available to homeowners, renters, condo owners and renters & commercial owners & renters. This list of questions can be used to make sure you understand your policy and coverage.

It is mandatory for homes and businesses with mortgages from federally regulated or insured lenders in high-risk flood areas to have flood insurance.  Flood insurance, while not mandatory for moderate-to-low risk areas, is available and recommended.

Rates are set and do not differ between companies or agents. Rates depend on date and type of construction, your area’s level of risk, and several other factors. All policy forms include coverage for buildings and contents.  However, content coverage is optional.  Content only coverage may make more sense for some renters/tenants.

There is typically a 30 day waiting period before the policy becomes effective.  Exceptions to this are:

• If your lender requires flood insurance in order to make, increase, extend, or renew your loan.
• If an additional amount of insurance is needed after a map revision.
• If flood insurance is required after a lender determines that a loan does not have flood insurance but should.
• If additional insurance is being obtained in connection with policy renewal.

Information for this article was found online at Floodsmart.gov.  Please visit this site for complete information.