No home or business is completely safe from potential flooding. Flood insurance can be the difference between recovering and being financially devastated. Whether you’re in an area that has a low or high risk of flooding, you should buy flood insurance if you own or rent property.
The National Flood Insurance Program (NFIP) defines flooding as a general and temporary condition where two or more properties or two or more contiguous acres of normally dry land are inundated by water or mudflow.
Risk Categories
- High-risk areas have at least a 1% chance of flooding annually. All property owners in these areas with mortgages from federally regulated or insured lenders are required to buy flood insurance.
- Moderate-to-low risk areas have less chance of flooding annually, but there is still a possibility of a flood. Flood insurance in these areas isn’t required, but is recommended for all property owners and renters.
- Where flood-hazard analysis hasn’t been conducted, but a flood loss still can occur.
Flood Facts
- No home or business is safe from the devastation of a flood; 25% of flood losses occur to homes outside of a high-risk area (category 1 or above).
- Property owners and renters should buy flood insurance even if you aren’t in a high-risk area.
- Flooding can happen anytime during the year—not just hurricane season.
- Your chances of being flooded are much greater than some other risks you face daily.
- If you live in a 100-year floodplain, there’s more than a 1 in 4 chance that you’ll be flooded during a 30-year mortgage.
- During a 30-year mortgage, you are 27 times more likely to experience a flood than have a fire.
- Just one-inch of water can cause $20,000 or more in damages to your property.
- Your business owners, homeowners or renter’s policy typically doesn’t cover flood damage.
How to Buy Flood Insurance
Homeowners, condo owners, renters, and business owners are eligible to purchase flood insurance through the NFIP if your community participates in the program. Private flood insurance (not part of the NFIP) may also be available.
Contact us today at 410-213-5600 for a flood quote! We’ll guide you through the options and find the best solution to protect your home and property.
The National Flood Insurance Program (NFIP)
The National Flood Insurance Program (NFIP), managed by the Federal Emergency Management Agency (FEMA), offers affordable flood insurance to property owners and encourages communities to adopt and enforce flood management regulations.
On October 1, 2020, the President signed authorization for the NFIP through September 30, 2021. This outcome is a departure from the 2‑3 month extensions we have seen over the last several years. We are hopeful that a longer‑term extension gives lawmakers a real opportunity to evaluate reasonable reforms to the NFIP in 2021.
The NFIP standard flood insurance policy pays for direct physical damage to your insured property up to the replacement cost or actual cash value (ACV) of actual damages, or the policy limits of coverage, whichever is less.
How Much Does Flood Insurance Cost?
According to FEMA, the average homeowners flood insurance premium is about $500 a year, or about $42 a month. Premiums will vary depending on your location and flood zone, the risk of loss in your area, the amount and type of coverage needed and the preferred deductible amount.
Do I Live in a High Risk Area?
To determine which flood zone you live in, visit: https://msc.fema.gov/portal
While you might not be located in a high risk zone, there are other important reasons to buy flood insurance. Examples include:
- Torrential rains. Hurricane Harvey dropped over 50 inches of rain in a non-flood zone area causing massive property flooding.
- Changes in terrain caused by wildfires, erosion, and building development increase water run off and the chance of flooding in urban and rural areas.
At Deeley Insurance Group, we’ve been protecting Delmarva’s coastal communities for over 90 years. We know flood insurance, and we’ll help you protect everything that matters most.
For more information on flood insurance, visit https://content.naic.org/consumer/flood-insurance.htm or https://www.floodsmart.gov/.
