Flood Insurance Coverage
Who Needs Flood Insurance?
You never know when you'll wish you had flood insurance coverage.
Case in point: Recently a family member who lives in the Midwest had serious damage to his home after constant rains saturated the ground. His home was damaged when this rain soaked the ground causing the soil around his house to become water logged. His home's foundation caved in. The saturated soil swelled with water causing dirt and cement blocks to move from their usual place into his basement.
He didn't have flood insurance because he didn't think he needed it. And who would think this would be considered a flood? The circumstances were not what we think of as a flood. After all, he lives miles from a river or other water body that could overflow, and the ground didn't have standing water like you think of with a flood.
But the insurance adjuster called it a flood, and without flood insurance, his insurance company did not compensate him for the damage. Here's more information on what flood insurance is and why you might need flood insurance coverage.
Photo of 1927 Mississippi River Flood, Mounds Cairo, IL Highway. Photo Credit: Steve Nicklas, NOS, NGS. Photo is in the public domain at Wikimedia Commons.
A Flood Defined
According to FloodSmart.org,
a flood is defined as:
- Overflow of inland or tidal waters
- Unusual and rapid accumulation
or runoff of surface waters
from any source
- Mudflow
- Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above
The National Flood Insurance Program (NFIP) - More flood information
The National Flood Insurance Program (NFIP) was created by Congress in 1968. The NFIP works with communities across the U.S. to protect areas from flooding by enforcing FEMA ordinances. In participating areas, homeowners can purchase flood insurance coverage to protect their homes from floods.
Source: FloodSmart.org
- The following occurrences can cause floods: flash floods, Spring thaw, La Nina, heavy rains, ice jams, flood after fire, West Coast rainy season, new development, snow melt, tropical storms, mud flows.
- Standard homeowner's insurance does not cover homes against floods. A separate flood insurance policy is needed. Check with your insurance agent about coverage.
- Everyone in the U.S. lives in a flood zone; all 50 states have floods.
- Floods constitute the number 1 natural disaster in the U.S.
Books About Insurance
The cost of flood insurance coverage
starts at $129 for those living in
low- to moderate-risk areas.
More Facts About Flood Insurance - From Consumer Advocate Clark Howard
Source: Clark Howard
- FEMA runs the flood insurance program in the U.S. even though you can buy flood insurance through an insurance agency.
- There are two types of flood insurance coverage: coverage for your structure and coverage for your possessions
- Flood insurance will pay the actual value of a dwelling or the possessions, not necessarily full replacement value.
Most flood insurance policies
go into effect 30 days
after they are purchased.
Detailed Flood Insurance Coverage Data - More About the National Flood Insurance Program
Affiliate Disclosure
This author, Peggy Hazelwood, participates in Amazon, eBay, All Posters, and other affiliate advertising programs. When you click an advertising link on this page and make a purchase, I receive a small percent of the sale. Thank you for reading this far!
