Since standard homeowners insurance doesn’t cover flooding, it’s vital to have insurance against flood devastation. If you live in an area susceptible to flooding, you should get protection from the National Flood Insurance Program.
National Flood Insurance Program (NFIP)
The National Flood Insurance Program offers flood insurance to homeowners, renters, and business owners if their community takes part in the program. It is administered by the Federal Emergency Management Agency (FEMA). The NFIP works with over 80 private insurance companies.
Homes and businesses with mortgages from federally regulated or insured lenders in high-risk flood areas are required to have flood insurance. If you live in a moderate-to-low risk flood area, flood insurance is not federally required. But it is still recommended.
Refer to the Community Status Book section on FEMA.gov to find out if your home or business is in a community that takes part in the National Flood Insurance Program.
Flood insurance insure two types of property: building and contents. The first insure your building; the latter insure your possessions; and neither insure the land they occupy. Flood insurance only covers damage that results from flooding.
Flood insurance rates are set nationally. The rates are not different with different companies or agents. Flood insurance rates depend on the date, type of construction of your home, and the building’s risk level.
Flood insurance can only be purchased through an insurance agent. You cannot purchase flood insurance directly from the federal government. There is a 30-day waiting period from your purchase before the flood insurance goes into effect.