Tips & Topics - Insurance
Flood Insurance
Did You Know?
In 2008, one-third of all claims paid by the National Flood Insurance Program (NFIP) were for policies in low-risk communities.
Floods and flash floods occur in all 50 states. Since 1978, the NFIP has paid $31.4 billion for flood insurance claims and related costs (as of 3/31/06).
A car can be carried away by only two feet of floodwater, and flash floods often bring walls of water 10 to 20 feet high.
Source: FEMA
According to the Federal Emergency Management Agency (FEMA), just a few inches of water in your home can cost you tens of thousands of dollars in damages. That’s why the agency recommends that everyone, even those in low- to moderate-risk areas, consider purchasing flood insurance coverage. They provide a one step risk assessment tool to help you determine if flood insurance may be right for you.
Most homeowners insurance polices do not cover floods, so if you decide that flood insurance is right for you, you should shop around for a policy that provides you with the best protection.
- FEMA has a website FloodSmart.gov to help you understand the types and costs of different flood insurance policies, and provides resources and tool to assist you in choosing a flood insurance policy.
- According to FEMA, flood insurance polices for homes in low risk areas could cost less than $150 per year. The National Flood Insurance Program (NFIP) provides guidance on how to choose your coverage, including resources to help you evaluate the costs of insurance policies based on different risk characteristics.