Why do you need Flood Insurance?

If you live in a flood prone area, you probably already know a few things about flood insurance. You know that most homeowners insurance policies do not cover floods caused by storms. You may have neighbors or friends who have lost everything they own because of a sudden flood caused by a hurricane or sudden storm. And even though we tend to associate flood damage with coastal areas, they can occur in every state. A lot of flood damage is caused by melting snow in areas that are thousands of miles from the coast!

Flood insurance comes from a special policy that is backed by the federal government with cooperation from local communities and private insurance companies. Dozens of private insurance companies write and service flood insurance policies for the government, and the policies are financed through insurance premiums. So you will generally contact a local property insurance agent, which could be the same person who would handle normal homeowners or auto insurance companies.

Many people don't realize they need flood insurance. However, statistics show that over a quarter of homes will suffer flood damage during the course of a 30 year mortgage. Only 9% of homes, during the same mortgage period, will suffer fire damage. Of course, almost all homes are protected against fire damage through normal homeowners policies, but they are not protected for flood damage! Furthermore, average claims for those who do have flood damage, and are protected by flood insurance are from $15,000 to $20,000! You can see that the claims are not trivial. Also consider that you will need temporary housing or relocation assistance if you cannot stay in your home while it is being repaired, or if it must be rebuilt somewhere else.

Where To Get Flood Insurance Program Help?

You can visit the FEMA (Federal Emergency Management Agency) website for more information on the National Flood Insurance Program. You can download a flood insurance manual, and also learn how to assess your own property's risk of flood damage.

Some of the information on the FEMA website is aimed at homeowners, but other information is highly technical. You may want to get help in a form that has already been broken down for your situation, and your local area. When you want to obtain flood insurance, an experienced local property insurance agent will probably be able to help you out.