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Flood Insurance Frequently Asked Questions

Are there times when you are required to purchase Flood insurance?
If you buy a house in a designated high-risk area and receive a mortgage loan from a federally regulated lender, your lender must require that you buy flood insurance. If a high-risk area is determined after you buy a house and you receive a mortgage loan from a federally regulated lender, you lender must require that you buy flood insurance. If refinancing or borrowing money to build, repair, reconstruct, or improve a structure in a flood hazard area, your lender must require that you buy flood insurance.

Isn't flood damage covered by homeowner’s policies?
No. But, you can protect your home, business, and belongings with flood insurance from the National Flood Insurance Program. You can insure your home with flood insurance for up to $250,000 for the building and $100,000 for the contents.

Is flood Insurance affordable?
The average flood insurance policy costs little more than $300 per year for about $100,000 of coverage. In comparison, a disaster home loan can cost you more than $300 per month for $50,000 over 20 years.

Is flood insurance easy to get?
You can buy NFIP flood insurance from private insurance companies and agents.

Can I buy flood insurance no matter what my flood risk is?
It doesn't matter whether your risk is high, medium, or low, you can buy flood insurance as long as your community participates in the National Flood Insurance Program. It's a good idea to buy even in low or moderate risk areas: almost 25 percent of all flood insurance claims come from low-to-moderate risk areas

Can I purchase flood insurance at any time?
You can buy flood insurance immediately before or during a Flood. There is a 30-day waiting period after you've applied and paid your premium. There is a 1-day waiting period if the initial purchase of flood insurance is made during the 13-months following a revised flood mapping for a community. The policy does not cover a "loss in progress".

Can I buy flood insurance if my property has been flooded?
You are still eligible after your home, apartment, or business has been flooded.

Is there a low-cost policy for homes in low-to-moderate risk areas?
The Preferred Risk Policy is available for just over $100 per year. You can insure your home with flood insurance for up to $250,000 for your home and $60,000 for the contents.

Does it make a difference when my house was built?
Buildings that were constructed prior to the date of the community's first Flood Insurance Rate Map (FIRM) pay an insurance premium based on chargeable rates that are subsidized by tax dollars. Buildings that were built or substantially improved after the issuance of a FIRM are charged actuarially sound insurance rates that fully reflect the building's risk of flooding

I rent. Can I purchase flood insurance to cover my belongings?
Up to $100,000 contents coverage is available for homeowners and renter. Whether you rent or own your home or business, make sure to ask your insurance agent about contents coverage. It is not automatically included with building coverage.

How much flood insurance coverage is available for non-residential buildings?
Up to a total of $1 million of flood insurance coverage is available for non-residential buildings and contents. Up to $500,000 of coverage is available for non-residential building. Up to $500,000 of coverage is available for the contents of non-residential buildings.

Is there a waiting period from the time you purchase insurance to coverage?
There is usually a 30-day waiting period before the coverage goes into effect.
Plan ahead so you're not caught without flood insurance when a flood threatens your home or business

Does NFIP offer coverage for the basement of my home?
The NFIP defines basement as any area of a building with a floor that is below ground level on all sides. Flood insurance covers structural elements, essential equipment, and other basic items normally located in a basement. Flood insurance does not cover finished walls, floors, or ceilings, or personal belongings kept in the basement.

Won't Federal Disaster Assistance pay for coverage if I don't have insurance?
Federal disaster assistance is only available if the President declares a disaster. More than 90 percent of all disasters in the United States are not Presidentially declared. Flood insurance pays even if a disaster is not declared.