“I didn’t have flood insurance because I wasn’t in a flood plain, so we were told we didn’t need it.”

Floods are the number one natural disaster in the United States. While some regions, such as coastal areas, are more flood-prone than others, the unpredictability of climate change exposes all property to some risk. And torrential rainfall isn’t the only culprit. 

Floods have many causes and can occur anywhere in the country, but here are some of the most common events that lead to flooding:

  • Storm surges in hurricane-prone areas
  • Flash flooding, caused by periods of intense rainfall
  • Mudslides, caused by long, heavy rain periods on a hill or mountainside
  • Rapid snowmelt, caused by the still-frozen ground unable to absorb excess water
  • Ice jams, which are formed when an ice chunk flowing in a river or stream blocks, dams or narrows passageways, causing overflow
  • Urban development, such as new construction and/or ground paving, which alters the topography by not allowing the land to drain properly

Water Losses and Flood Damage

For your losses to be covered under a flood insurance policy, the following definition of a flood applies:

“A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from: overflow of inland or tidal waters; and unusual and rapid accumulation of surface waters from any source; or mudflow; or 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.”

A standard homeowner’s policy will not cover flood damage. Flood losses are covered by a separate flood policy provided either by the National Flood Insurance Program (NFIP) or a Private Market Flood carrier. A Flood policy covers all the types of floods discussed above, including mudslides, though it is important to note that it does not cover landslides even if they are caused by heavy rain.

To make sure you get a fair price, all NFIP flood policies are underwritten and backed by FEMA. Premiums and eligibility for Private Market Flood policies vary greatly between companies and may not be available in your area.

Associated Costs

As a homeowner, you can insure your home for up to $250,000 and its contents up to $100,000 on a primary flood policy, with higher limits available through an Excess Flood policy. For a NFIP policy with $250,000/$100,000 building and contents coverage, yearly premiums average $500 in low- to moderate-risk areas.

If your home is located in a high-risk area, or you don’t know what your flood exposure is, talk to the professionals at Lawley to determine your premium and proper protection.

Flood coverage is available even if you are a renter. You can cover your belongings up to $100,000 on a primary flood policy, and higher limits are available through an Excess Flood policy.

What’s Not Covered

Flood insurance has eligibility requirements and numerous exclusions. According to the National Flood Insurance Program, the following kinds of damage are not covered by flood insurance:

  • Damage caused by moisture, mildew, or mold that could have been avoided by the property owner or which is not attributable to the flood
  • Damage caused by earth movement, even if the earth movement is caused by flood
  • Additional living expenses, such as temporary housing, while the building is being repaired or is unable to be occupied
  • Loss of use or access to the insured property
  • Financial losses caused by business interruption
  • Property and belongings outside of an insured building, such as trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools
  • Currency, precious metals, and valuable papers such as stock certificates
  • Most self-propelled vehicles, such as cars, including their parts
  • Coverage for Detached Garages may be extended from the Building coverage on a flood policy; however, this does NOT increase the total amount of coverage. Any other structure such as a guest house, barn/shed, or pool house on the property requires its own separate Flood policy to provide coverage.

NFIP Flood insurance coverage is capped at $250,000 per building and $100,000 for contents. Higher limits may be available through Private Market Flood insurance companies or on an Excess Flood insurance policy.

Deductibles apply separately for your building and contents coverages.

Higher coverage limits are available for nonresidential structures and their contents. Check here for more details from FEMA.

New flood insurance policies usually have a 30-day waiting period, so don’t delay in protecting one of your most valuable assets—your home. Contact Lawley today for more information on flood insurance.

Even an inch of water can cause thousands of dollars in damage, shocking those who find out flood losses are specifically excluded from their homeowners and personal umbrella policies. Flood insurance provides the protection you need should a flood damage your property. The cost of a policy varies based on the amount of coverage you need, deductible selected, and your property’s flood risk.  If you have further questions about flood insurance or your individual exposure, Lawley is here to help.

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