Floods can happen any time, any where; one does not need to live near water to be flooded. Flooding is America's most common natural disaster and yet it is not covered by most homeowners insurance. It does not matter if your flood risk is low or high because between 20 and 25 percent of all flood insurance claims come from low-risk areas. Bottom line, your home has a 1 in 4 chance of being damaged by a flood over the life of a 30-year mortgage.
 

The National Flood Insurance Program defines covered flooding as, "a general and temporary condition during which the surface of normally dry land is partially or completely inundated. Flooding can be caused by an overflow of inland or tidal waters; unusual and rapid accumulation or runoff of surface waters from any source, such as heavy rainfall or mudflow; storms; melting snow; hurricanes; dam, etc." In simple terms, a flood is an excess of water on land that is normally dry.  

Familiarize yourself with these terms to help identify a flood hazard:

Flood Watch: Possible flooding.

Flash Flood Watch: Flash flooding is possible and be prepared to move to higher ground.

Flood Warning: Flooding is occurring or will occur soon; if advised to evacuate, do so immediately.

Flash Flood Warning: A flash flood is occurring; seek higher ground on foot immediately. 

A standard Flood Insurance policy pays for direct physical damage to your insured property up to the replacement cost or actual cash value of the damages or the policy limit of liability, whichever is less. In addition, some flood policies do not cover contents and therefore may be purchased separately.   

Flood insurance protects your most important investment, your home and/ or business and its contents. The insurance is considerably less expensive than federal disaster loans and it is 100 percent backed by the U.S. government. Federal disaster assistance may not always apply to your specific flood because not all floods are declared a federal disaster area and even when they are the aid is usually extended in the form of a loan. Most loans must be paid back with interest and you may be required to use part of the proceeds to purchase a flood policy for your property. Whether you rent or own your home or business, flood insurance is available and is affordable. The average flood insurance policy costs on average about $400 a year for $100,000 of coverage.  

All taxpayers benefit when those in flood-prone areas buy flood insurance. As floods occur, the insurance pays for the covered losses rather than the U.S. Treasury funds for federal disaster assistance.

Don't wait until it is too late! A policy will usually take 30 days from application to effective date of coverage, so plan ahead so you are not caught without insurance when a flood threatens your home or business.

Please contact us for more information on flood insurance or any insurance need.