Flood insurance is a specific type of insurance policy that protects your home, belongings, or business from financial losses caused by flooding. Standard homeowners and business property insurance policies usually do not cover flood damage.

What is a flood?

• For insurance purposes, a flood is an excess of water on land that’s normally dry. It usually affects at least two properties or two or more acres of land.
• Common causes include:
  • Heavy or prolonged rain
  • Overflowing rivers and lakes
  • Storm surges from hurricanes or coastal storms
  • Melting snow
  • Failed dams or levees

Why Do I Need It?

• Floods are common and costly: Floods are the most frequent natural disaster in the US. Even a few inches of water can cause tens of thousands of dollars in damage.
• Protection from devastation: If you live in a flood-prone area, or even an area with moderate flood risk, flood insurance provides crucial financial protection.

What Does It Cover?

Two main types are available:

1. Building Coverage:
   • Protects the structure of your home, including:
     • Foundation
     • Electrical and plumbing
     • Built-in appliances
     • Permanently installed flooring
2. Contents Coverage:
   • Protects belongings inside, such as:
     • Furniture and clothing
     • Electronics
     • Valuables (might have sub-limits)

Where Do I Get It?

• National Flood Insurance Program (NFIP): Most flood insurance is obtained through the NFIP, a federal program managed by FEMA. You can purchase it through participating insurance companies.
• Private Flood Insurance: Some private insurers offer flood insurance, which might have broader coverage or different options from the NFIP.

Important Considerations

• Flood zones: Your flood risk level affects the cost and sometimes the availability of coverage.
• Waiting Periods: There’s often a 30-day waiting period before NFIP policies take effect, so don’t wait until a storm is imminent.