FLOOD INSURANCE BASICS
FLOOD FACTS
Catastrophic floods can impact consumers anywhere in the country. Whether you live in an area that
has a low or high risk of flooding, you should buy flood insurance if you own or rent property.
The National Flood Insurance Program (NFIP) defines flooding as a
general and temporary condition where two or more properties or two
or more contiguous acres of normally dry land are inundated by water or
mudflow.
Not everyone faces the same level of risk of loss from flooding; The NFIP
helps communities understand their risk with flood maps which are
divided into three categories:
Property owners and renters should buy flood insurance even if you aren’t in a high-risk area.
Your chances of being flooded are much greater than some other risks you face daily.
If you live in a 100-year floodplain, there’s more than a 1 in 4 chance that you’ll be flooded during a
30-year mortgage. During a 30-year mortgage, you are 27 times more likely to experience a flood
than have a fire.
Just one-inch of water can cause $20,000 or more in damages to your property.
Your homeowners or renter’s policy typically doesn’t cover flood damage.
No home is safe from the devastation of a flood; 25% of flood losses occur to homes outside of a
high-risk area (category 1 or above).
High-risk areas have at least
a 1% chance of flooding
annually. All homeowners in
these areas with mortgages
from federally regulated or
insured lenders are required
to buy flood insurance.
Moderate-to-low risk areas
have less chance of flooding
annually, but there is still a
possibility of a flood. Flood
insurance in these areas isn’t
required, but is recommended
for all property owners and
renters.
Where flood-hazard analysis
hasn’t been conducted, but a
flood loss still can occur.
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FLOOD POLICIES
The NFIP standard flood insurance policy pays for direct physical
damage to your insured property up to the replacement cost or
actual cash value (ACV) of actual damages, or the policy limits of
coverage, whichever is less.
Flood insurance policies cover up to $250,000 of flood damage to
a home’s structure, including:
Personal property inside your home is not covered under the Building Property coverage form. However,
coverage is available up to $100,000 for an additional premium.
HOMEOWNERS STRUCTURE
HOMEOWNERS CONTENT
Damage to the furnace, water heater, air conditioner and floor surfaces (carpeting and tile) Clothes, washer and dryer
Debris removal
and clean up
Television and furniture
Coverage for basements,
crawlspaces and ground
level enclosures on an
elevated home is limited, so
talk to your agent about any
restrictions in the policy
Other personal belongings
BUSINESS OWNERS
Personal property is not covered under Building Property policy form. However, coverage is available
for up to $500,000 and an additional premium.
HOW TO BUY FLOOD INSURANCE
Homeowners, condo owners, renters, and business owners are eligible to
purchase flood insurance through the NFIP if your community participates in the
program. Private flood insurance (not part of the NFIP) may also be available.Flood
insurance is sold by licensed insurance agents.
The NFIP offers an agent locator. Contact a local agent by calling 1.800.427.4661 or visit
www.floodsmart.gov for a list of local agents in your area.
It is important to note that the NFIP insurance policy doesn’t go into effect immediately after you
buy it. NFIP policies have a 30 day waiting period unless a policy is bought at the same time as a
newly purchased home.
If your community doesn’t participate in the NFIP, contact your licensed insurance agent to
ask about private flood insurance. If your agent can’t write a private flood policy, they
may refer you to another licensed agent.
If you choose a private flood insurance policy, shop around and compare coverage
and premiums before you decide which policy to buy.