Flood Insurance

Flood insurance is not typically included in standard homeowner’s policies. There is a federal program in place where flood insurance can be purchased.

Flood insurance was put in place to provide an alternate to disaster assistance. Flood insurance will cover the cost to repair damage and replace contents caused by flooding. The National Flood Insurance Program requires community participation in order for resident to take advantage of the insurance program. The towns agree to adopt floodplain management and ordinances meant to reduce future flood damage. This flooding condition can be brought on by weather related events such as hurricanes, tornados, blizzards and continuous rainfall.

Flooding is defined as the temporary and general condition of partial or complete flooding of at least two acres of land that is typically dry or two or more properties flooded from the overflow of inland water and quick and unusual accumulation of surface water runoff.

When formulating insurance policies, the economics of it is the large numbers of people buy insurance but only a fraction of those people file and claim which means the insurance pool is enough to support the payouts. In the case of flood insurance there are only a small number of people who purchase that insurance and most of the policy holders make claims against the insurance. With so few people in the flood insurance pool it is impossible for the insurance pool to support the claims and payouts. Since private insurance is not able to provide flood insurance, the Federal Government set up a program for those in flood prone zones to obtain flood insurance at a reasonable cost.

Flood insurance is required in minimum risk and high risk flood areas, as shown on the Flood Insurance Rate Maps available through the Federal Government. Properties with mortgages backed by the Federal Housing Agency and Veterans Administration are also subject to flood insurance. It is unfortunate that most people do not read their homeowners policy close enough to know their policy does not include flood coverage, except when the plumbing bursts. It is usually after flooding due to a weather related event homeowners become aware they are up a creek without a paddle.

Flood insurance is available for owners of property in a flood prone zone, whether it is a residential home, condominium, apartment building or commercial property. Those who rent in a flood prone zone are eligible to purchase flood insurance, as well. Flood maps have been revised as of January 2011 as the flood risks are changing due to better flood control technology, natural changes in the topography and aging flood control structures in place now. Check the most up to date to see if there is change in your flooding status. Flood Insurance Maps are available through the Federal Government or they can be viewed at your local building department. Your insurance company will also have copies of the updated maps.

It is best to speak with an insurance company or agent who specializes in flood insurance to find out if you qualify for flood insurance.