Protect yourself with flood insurance
As a homeowner, it's important to insure your home and its contents. Depending on your property location, your home is either considered at high-risk or at moderate-to-low risk for a flood. Your insurance premium will vary accordingly.
If you are a tenant, it is wise to insure your contents. The policy premium is based on several factors, including the flood risk of the building that you occupy.
If you rent or own your condominium unit, it is a good idea to purchase both building (if you own the unit) and contents coverage. If you are a tenant, contents-only coverage is available. The policy premium is based on several factors, including the flood risk of the building that you occupy.
Why do you need flood insurance?
FACT: Floods are the nation’s most common and costly natural disaster and cause millions of dollars in damage every year.
FACT: Homeowners and renters insurance does not typically cover flood damage.
FACT: Floods can happen anywhere--More than 20 percent of flood claims come from properties outside the high risk flood zone.
FACT: Flood insurance can pay regardless of whether or not there is a Presidential Disaster Declaration.
FACT: Most federal disaster assistance comes in the form of low-interest disaster loans from U.S. Small Business Administration (SBA) and you have to pay them back. FEMA offers disaster grants that don't need to be paid back, but this amount is often much less than what is needed to recover. A claim against your flood insurance policy could and often does, provide more funds for recovery than those you could qualify for from FEMA or the SBA--and you don't have to pay it back.
FACT: You may be required to have flood insurance. Congress has mandated federally regulated or insured lenders to require flood insurance on mortgaged properties that are located in areas at high risk of flooding. But even if your property is not in a high risk flood area, your mortgage lender may still require you to have flood insurance.
Flood insurance helps more: Check out your state's flood history with FEMA's interactive data visualization tool. Roll your cursor over each county to see how many flooding events have happened. The tool allows you to compare how much FEMA and the U.S. Small Business Administration have provided in terms of federal disaster aid after Presidential Disaster Declarations to the amount the National Flood Insurance program has paid to its policyholders. It's easy to see that having flood insurance provides a lot more help for recovery.
Residential flood insurance
Just a few inches of water from a flood can cause tens of thousands of dollars in damage. From 2010 to 2014 the average residential flood claim amounted to more than $39,000. In 2014, the average flood insurance policy premium was about $700 per year. Flood insurance is the best way to protect yourself from devastating financial loss.
Commercial flood insurance
At least 25 percent of businesses that close after events, like a flood, never reopen. From 2010 to 2014, the average commercial flood claim amounted to nearly $89,000. Flood insurance is the best way to protect yourself from devastating financial loss.