Flood Insurance

There's a lot of misinformation floating around about flood insurance, about who can and cannot buy it, about its cost, and about how to apply for it.

Who Can Purchase Flood Insurance?
Almost everyone whose community participates in the National Flood Insurance Program can buy flood insurance, even people whose homes have been flooded in the past. An exception is homes in Coastal Barrier Resources System areas. In 1982, Congress passed an act to discourage building in fragile coastal areas, making national flood insurance unavailable to those homeowners. Private flood insurance may be available, so talk to your insurance agent.

Who Needs Flood Insurance?
You might assume the only people who need flood insurance are those who live in flood zones or in areas that are affected by tropical systems. That's not true. Twenty to twenty-five percent of all flood-related claims are made by people in low to moderate risk areas. The National NFIP defines flooding as "a general and temporary condition during which the surface of normally dry land is partially or completely inundated." That can happen anywhere after heavy rains, snow melts, or other events that trigger water release. Lenders require some home owners to purchase flood insurance before closing on a home.

Isn't Flood Insurance Part of My Homeowner's Policy?
No. Your homeowner's policy does not cover losses caused by flooding. It probably covers damage by blowing rains that enter as a result of wind damage--but not flooding.