Many homeowners who purchase homeowner's insurance do not realize their policy does not cover property loss from flooding.  Unfortunately, too many homeowners learn about flooding and homeowner's insurance after they have experienced home and property damage from a flood.  If you are a homeowner or are considering purchasing a home, take the time to learn everything you need to know about floods and your homeowner's insurance before you find yourself in a situation where you need to file a claim against your insurance.

Flooding Coverage

If you rent or own your home, you should know that a typical homeowner's insurance plan does not cover flood.  If you live in an area at risk for flooding, you should purchase flooding insurance coverage.  Flooding insurance coverage is a different and separate type coverage from homeowner's insurance.   There are approximately 21,000 communities, which participate in the National Flood Insurance Program's (NFIP) flood insurance coverage.  You can purchase NFIP flood insurance, if you need it, from one of the 80 insurance providers that work with the Federal Emergency Management Agency (FEMA).    

You can purchase insurance for both, your property and your contents; however, they are separate policies.  Property coverage is up to 250,000.00 and content coverage is 100,000.00 thru the NFIP.  You can purchase additional flood insurance or excess insurance if you feel the maximum NFIP flood insurance will not be enough for your home in the event you have to rebuild.

Defining Flooding Areas

Flooding areas are defined in terms of risk factors and the degree of risk determines if the homeowner is federally required to purchase flooding insurance.  Homeowners in high-risk areas must purchase flood insurance if their mortgage loan is a federally insured loan.  For homes that have a moderate-low risk, although not required, the risk factor gives reason for the government to encourage homeowners to purchase flooding insurance.  There are some areas with no risk data; however, the areas are still at risk for flooding.  Insurance premiums are based on risk factors, so if you live in a high-risk area, you can expect to pay higher insurance premiums for flood coverage.

Flood insurance, especially if you live in an area at risk for flooding, is insurance that will cover your home in the event of flood damage to your home.  Because flooding can cause a lot of damage to the structure of a home, you cannot afford not to have it.  Flood insurance is available for your property and your contents; however, there are some limits to what is covered.  Be sure you understand what is covered under your policy and what is not before you purchase. For more information, contact companies like Ronald H. Krupa Insurance Agency.