Flood Insurance 101
Did you know FEMA estimates just one (1) inch of flooding can cause more than $25,000 in damage?
But not everyone has the same risk of flooding. The National Flood Insurance Program (NFIP) helps communities assess their flood risk with maps defining three categories:
- High-risk: 1% chance of flooding annually. Zones usually include the letters ‘A’ or ‘V’.
- Moderate-to-low risk: Less chance of flooding and insurance is not required. Zones usually include the letters ‘X’, ‘B’, or ‘C’.
- Unmapped: Flood analysis has not been conducted, but a flood can still occur.
For those living in a high-risk flood zone, your mortgage company will require the purchase a flood insurance policy. This requirement is based on statistics which show homes in a high-risk flood zone have a 1 in 4 chance of becoming flooded during the life of a 30-year mortgage.
And even if you do not carry a mortgage or are a renter, you will still want to buy a flood insurance policy. Properties in a high-risk flood zones, also known as 100-year flood plains, are 27 times more likely to suffer a loss by flood than by fire.
If you do not live in a high-risk flood zone, you should still consider purchasing flood insurance as 25% of all flood losses occur in unmapped, low, or moderate risk zones.
Flood insurance policies through the NFIP can provide limits up to $250,000 and cover the following:
- Debris removal
- Built-in appliances
- Foundation and structure
- Garage and detached structures
- Plumbing and electrical systems
- Personal property (actual cash value)
- Air conditioning systems and furnaces
- Permanently installed fixtures and flooring
- Up to $2500 for valuables (jewelry, memorabilia, furs, and art)
It is important to note flood policies do not cover damage caused by sewer backups, damage caused by mold or termites, vehicles, swimming pools or spas, or landscaping.
No matter where you happen to live, learn what your risk of flooding might be by contacting our office today. You’ll be surprised just how affordable flood insurance can be.
Featured Blogs
- Fueling Your Mind with Brain-Boosting Foods
- 5 Simple Ways to Boost Your Immune System (and 1 unusual way)
- Embracing Our Roles: Renewing Our Commitment to Sustainable Living
- Tips for a Stress-Free Tax Season Experience
- Spring fitness ideas
- Inspirational women who make the world a better place
- Creating a Positive Start to Your Day
- Spring Forward: Adjusting Your Routine for Daylight Saving Time
- Gratitude - Key to a Positive Mindset
- Adopting a Holistic Wellness Approach to a Healthier You
- 3 Common Sense Things People Should Know
- Exploring Superfoods: Nutrient-Packed Ingredients for a Healthy Diet
- Unraveling the Mystery of the Extra Day
- Digital Detox: A Healthy You in a Hyperconnected World
- Financial Fitness in 2024: Budgeting and Saving Tips
- Three Joyful Habits for a Healthier You in 2024
- New Year's Resolutions: Staying Committed Year Round
- The Magic of Christmas Traditions
- Staying Healthy During the Winter Months!
- How to be a Time Management Whiz During this Busy Season
- Self-care tips for December
- Five Health “Hacks” For Happy Holidays
- Turning 65? Looking at Medicare?
- Turning 65? What You Need to Know about Signing up for Medicare
- The Smart Home: What is that?
- Important definitions to help you understand your life Insurance
- Why an Insurance Agent Makes a Difference When Buying an Insurance Plan
- Preparing For an Emergency
- Davis Insurance Fresh New Look!
- Why Do I Pay Medicare Part B
- Don’t Let Insurance Coverage Gaps Put You at Financial Risk
- It’s February And That Means It’s American Heart Month
- Starting a New Business? Don’t Forget Your Insurance
- How to Stay on Track with Healthy Goals for 2017
- Insurance and Financial Planning Resolution for 2017!
- Wishing You a Happy Holiday Season
- End of the Year Financial To-Do List
- Modest Increases for 2017 Medicare Parts A & B Premiums and Deductibles
- Open Enrollment For Health Insurance is Here!
- Eat Well, Sleep Enough and Move to Stay Healthy
- Four things to know about Medicare Open Enrollment
- Pick a Plan, then Find The Right Doctor