What You Need to Know About Flood Insurance

As a homeowner, it’s important to consider all possible risks to your property, including natural disasters like floods. Floods can occur at any time, and they can cause significant damage to your home, often resulting in costly repairs. In fact, floods are the most common natural disaster in the United States. To protect your property, you may want to consider purchasing flood insurance. In this article, we’ll cover everything you need to know about flood insurance, including what it covers, how much it costs, and how to purchase a policy.

What is Flood Insurance?

Flood insurance is a type of insurance that protects your property from damages caused by flooding. It is a separate policy from your homeowner’s insurance and covers damages to your home and personal property caused by floods. Flood insurance can also cover damages to your basement and the foundation of your home. It is important to note that flood insurance does not cover damages caused by sewer backups or sump pump failures. These types of damages require a separate endorsement or policy.

Why Do You Need Flood Insurance?

Even if you don’t live in an area that is prone to flooding, it’s still important to consider purchasing flood insurance. Floods can happen anywhere, and they can cause significant damage to your property. In fact, according to FEMA, just one inch of flood water can cause up to $25,000 in damages to your home. Additionally, many mortgage lenders require flood insurance if you live in a high-risk flood zone.

What Does Flood Insurance Cover?

Flood insurance covers damages to your home and personal property caused by flooding. This includes damages to your home’s foundation, walls, floors, and personal belongings. Flood insurance also covers damages to electrical and plumbing systems, as well as appliances like air conditioning units and water heaters. It’s important to note that there are limits to the coverage provided by flood insurance. For example, there is a $250,000 limit on coverage for the structure of your home and a $100,000 limit on coverage for personal belongings.

How Much Does Flood Insurance Cost?

The cost of flood insurance varies depending on several factors, including your location, the flood zone you live in, the amount of coverage you need, and the deductible you choose. On average, flood insurance costs around $700 per year, but it can be much more expensive in high-risk flood zones.

How to Purchase Flood Insurance

Flood insurance is available through the National Flood Insurance Program (NFIP), which is managed by FEMA. You can purchase a policy through a licensed insurance agent or directly from the NFIP. It’s important to note that there is typically a 30-day waiting period before flood insurance coverage takes effect, so it’s important to purchase a policy well in advance of any potential flooding.

Tips for Lowering Your Flood Insurance Premium

There are several steps you can take to lower your flood insurance premium. One of the most effective ways to lower your premium is to elevate your home above the base flood elevation. You can also install flood vents to reduce the risk of damage to your home’s foundation. Additionally, you can choose a higher deductible, which will lower your premium but also increase your out-of-pocket expenses in the event of a flood.


Flood insurance is an important consideration for any homeowner, as floods can happen anywhere and can cause significant damage to your property. By purchasing flood insurance, you can protect your home and personal belongings from damages caused by flooding. It’s important to work with a licensed insurance agent to determine the right amount of coverage for your needs and to take steps to lower your premium, such as elevating your home and choosing a higher deductible. With the right coverage and preparation, you can rest assured that your property is protected in the event of a flood.

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