Flood Risks: They’re Not Just for Floodplains

  • Only around 15% of households nationwide are insured against flood damage.
  • Floods are the most common and deadly natural disaster in the U.S.
  • Around 2.5 million flood claims have been filled in the U.S. in the last 50 years.
  • Most property policies do not include coverage for flood insurance.
  • Commonly, flood policies are specific to one structure and often don’t cover the contents of the structure.

You might see the statistics1 above and think two things.

  1. A lot of other people seem to be at risk of flood loss without coverage.
  2. I don’t live in a floodplain, so I’m not at risk.

But floodplains aren’t the end all, be all for flood risks. Snow melt, flash flooding, drainage issues caused by flooding, and more can leave your property at risk no matter your elevation. And if you don’t have the right coverage, you may be left without the aid of insurance to support your repairs and recovery.

Flood Insurance Options

The National Flood Insurance Program (NFIP)

The Federal Emergency Management Agency (FEMA) administers the NFIP for government-backed flood insurance. The NFIP offers two types of coverage – building coverage and contents coverage – to protect your home and belongings.

  1. Buildings coverage can cover the below up to $250,000:
    • Structures
    • Electrical and Plumbing
    • Appliances (built-in)
    • Furnaces and Water Heaters
    • Other items as outlined in the policy
  2. Contents coverage can cover the below up to $100,000:
    • Clothing
    • Furniture
    • Belongings
    • Washers and Dryers
    • Valuable items
    • Other items as outlined in the policy

The cost of NFIP insurance does not vary between insurance companies that are in FEMA’s Write Your Own (WYO) program.

Private Flood Insurance Coverage

Private flood insurance refers to policies that insurance companies design and file with regulators for their own company-backed flood coverage. They typically offer similar building and contents coverage as the NFIP, but with these key differences:

  1. Buildings coverage that can cover up to $500,000 or more.
  2. Contents coverage that can cover up to $250,000 or more.
  3. Excess coverage or “loss of use” coverage.

We can help you learn about your flood zone risks, your options for coverage, and what you may need to be better protected. Talk with one of our agents today!

1-per Simply Insurance stats