3 Most Important Things to Know About Flood Insurance

3 Most Important Things to Know About Flood Insurance

November 30, 2022

If you live in a flood zone, your home insurance policy won't cover flood damage. But the good news is, you can purchase separate flood insurance to ensure you are fully protected should a flood affect your property.

What You Need to Know About Flood Insurance

Here are 5 important things to know about Flood Insurance.

#1 Flood Insurance is Not Included in Homeowner’s Insurance

Flood insurance is not included in a standard homeowner’s insurance policy. It covers damage to your home caused by broken pipes or other plumbing issues, but it doesn't provide protection from water damage caused by storm surges or river flooding. Flood insurance can only be purchased separately from standard homeowner's policies through a federal program run by the National Flood Insurance Program (NFIP). The NFIP offers both primary and separate policies for homeowners who want to protect themselves from floods.  

#2 High-Risk Flood Zones

If you live in a high-risk flood zone, your mortgage lender may require you to purchase flood insurance, which is only available through the NFIP.

There is a 30-day waiting period after purchasing flood insurance before the policy goes into effect. In addition, the coverage amount (up to $250k) is subject to change based on certain factors such as:

  • Type of structure (single family home vs apartment building)
  • Number of occupants living at that property (more people = higher risk)

#3 The 30-Day Waiting Period

One of the most important things to know about flood insurance is that, unlike other types of insurance, there is a 30-day waiting period after purchasing before the policy goes into effect.

The reason for this is because it takes time for FEMA to verify your information and process your application, so do not purchase flood insurance until you've completed these steps:

  1. Obtain a quote from us. We will explain what you need to do in order for you to obtain coverage.
  2. Confirm that your property meets all FEMA requirements by checking its Flood Insurance Rate Map (FIRM). A FIRM shows how much risk there is of flooding in certain areas within a given community at various times throughout the year - known as "hazards." If your property lies within an area identified by a red H on a FIRM map, then you may be eligible for coverage under NFIP's Standard Flood Policy (SFP).

The SFP provides two types of protection: personal property and building contents up to $100k per structure/premises; and building structure up to $250k/$500k depending on whether the home has had previous serious damage.   

What Next?

If you live in a high-risk flood zone where flooding is common or if you just want to protect yourself from the possibility of flooding, it’s important to understand the difference between standard homeowner’s insurance and flood insurance. At Fiorentino Insurance Group, we can help you navigate the differences and find a flood insurance policy that best suit your needs. Contact us today to discuss requirements in your area and how we can help.