Ninety percent of all natural disasters in the United States involve flooding, and flood damage strikes frequently in low or moderate risk areas. Homeowners policies don’t cover flooding so—whatever your area’s risk level—learn about flood insurance protections.
According to the Federal Emergency Management Agency (FEMA) floods—including inland flooding, flash floods and flooding from seasonal storms—occur in every region of the United States. In fact, 90 percent of all natural disasters in the U.S. involve some type of flooding.
If you're moving into a new home, apartment or business location, ask your mortgage lender, your local officials or your insurance professional if the location has been known to flood. The National Flood Insurance Program (NFIP) will also be able to provide flood risk information on your area.
Even if you don't live in a high flood risk area, you're in some danger of loss from a flood, because 20 percent of all flood claims are filed in low to moderate flood risk areas. That means, you should know how to prepare for the possibility of a flood, know your flood insurance options and obtain adequate coverage.
Insuring yourself against a flood is a little different than other policies.
When buying flood insurance, you should know that:
Having a flood insurance policy is way to protect your assets most fully from the cost of flood damages and loss.
Without insurance, relief from floods primarily comes in the form of loans. If your community is declared a disaster area, no-interest or low-interest loans are often made available by the federal government as part of the recovery effort. However, these loans must be paid back, which means you're still liable for the entire cost of your damages or losses.
FloodSmart.gov (888) 379-9531
Next steps link: For peace of mind and full protection, understand how much insurance coverage you need.