Natural disasters like floods can ruin homes, livelihoods, and communities. In addition, they can leave individuals and families financially unstable—or worse, bankrupt.

Since floods occur nationwide—even in low-risk flood zones—it is recommended that you at least consider your potential for flood damage and what options you have to insure your home and belongings.

WHAT IS FLOOD INSURANCE?

Flood insurance covers damages to your home and belongings caused by a flood. This includes water damage from an overflowing river, heavy rain, a flash flood, melting snow, or a dam release, among other flood events.

The National Flood Insurance Program (NFIP) offers flood insurance to homeowners across the United States that includes coverage for your dwelling and its contents. You can also get flood insurance from non-government companies.

What Does Dwelling Coverage Include?

Dwelling coverage pays for flood damage to your home’s structure, including your foundation and above-ground walls, as well as your electrical, heating, and cooling systems. Some private insurers offer coverage for basement flooring and finished walls if you choose to add it, but NFIP does not. It’s a good idea to assess the cost of rebuilding your home and take out that much coverage at a minimum.

What Does Personal Belongings Coverage Entail?

Personal belongings insurance will cover your possessions, such as clothes, furniture, and appliances, if floodwaters damage or destroy them. This covers everything that is not part of the building’s structure and not kept in a basement or other below-ground area.

You can estimate the value of your electronics, furniture, clothes, and other personal possessions kept in your house to determine the ideal coverage level. If you want coverage for such personal belongings kept in your basement, you will need to look into private flood insurance.

HOW MUCH FLOOD INSURANCE DO I NEED?

Balancing practicality with peace of mind is critical when deciding how much flood insurance to buy. Of course, having the required amount is essential, but what happens if you face a disaster?

To ensure maximum protection, consider purchasing coverage equal to the worth of your home and possessions. You may need to go to the private insurance market if your total insurable value exceeds what’s offered by NFIP.

What Are the Minimum Flood Insurance Requirements?

If you have a mortgage and live in a high-risk flood zone, your lender will likely require you to carry flood insurance for at least the value of the loan. Renters and those without a mortgage are not required to buy flood insurance, but this opens up severe exposures to financial loss.

Having flood insurance that covers the replacement value of your home and contents is highly recommended if you live in a high- or moderate-risk zone or live near a dam, reservoir, or other potential source of flooding. Remember also that even creeks can become torrential rivers during and after major rain events.

REDUCE YOUR RISK OF FLOOD DAMAGE

Though you cannot make major improvements to your town’s flood-prevention systems, you can take actions to reduce your home’s vulnerability to flood damage. Measures depend on your home’s structure, your property’s topography, and your budget.

For example, a landscaper may be able to grade your land to direct water flow away from your home. A foundation professional may be able to install flood vents in your lowest home levels to channel water through the foundation, thereby preventing structural damage. Or you may be able to elevate your HVAC systems, water heater, and/or electrical panel above projected flood level.

Preparing early can be the difference between an inconvenience and a major disaster. Take the time to evaluate your risks and consult an insurance professional to get the right flood insurance coverage for your specific needs.

For help finding flood and water damage insurance for your home, contact an IOA agent at 1-833-546-2872 or click here to request a quote.