Should I get Flood Insurance?

8/13/2018 (Permalink)

Should I get flood insurance always crosses a homeowners mind after a situation has arose and unfortunately in most cases, that option is too late. According to FEMA, Standard homeowner’s insurance policies do not cover flood. Flood is most often called an excluded peril, meaning it’s not covered. You should consider flood insurance even if you’re not required to purchase it or if you live outside a high-risk flood zone, called a Special Flood Hazard Area.

Flood zones are areas where there is a higher statistical probability of a flood occurring, but that doesn’t mean floods don’t occur elsewhere. In fact, in Texas over the last five years, a number of floods exceeded the statistical probability, putting more homes and properties in harm’s way than were expected.

Flood insurance can protect you from the catastrophic financial impact of flooding. Just a few inches of water can mean thousands of dollars of loss to your home or business. As long as your community participates in the National Flood Insurance Program (NFIP), as a homeowner or business owner you can get building and contents coverage included in your NFIP policy. Renters can get coverage for contents only. Policies issued by the NFIP pay even if a federal disaster is not declared.

Where can I buy flood insurance?

• You can buy flood insurance by contacting your insurance company or agent.
• For an agent referral call 800-427-4661 or you may visitwww.fema.gov/national-flood-insurance-program.

When should I buy a policy?

As soon as possible. FEMA urges you to buy flood insurance before a flood event occurs. NFIP cannot pay a claim if you don’t have a policy in effect when damage occurs. An insurance policy from NFIP becomes effective 30 days after you buy it, unless the purchase is associated with the origination, renewal or extension of a federally backed loan on property in a high-risk area.

I am not in a flood hazard area, but I’d like to purchase flood insurance. Is this possible?

Yes, as long as your community participates in NFIP. You are eligible to purchase a flood policy with the same coverage you would receive if you lived in a high-risk area. A Preferred Risk Policy (a lower-cost flood insurance policy) provides both building and contents coverage for properties in moderate-to-low risk areas for one price.

Can I get flood insurance if I'm renting a property?

Yes. If you live in a community that participates in NFIP and you are a renter, you can get flood insurance to cover the contents of your home, apartment or business at a rented location.