A: Flood damage to your home and personal property is NOT covered by standard homeowners’ insurance policies.
Most insurance companies offer separate flood insurance policies for their customers. The policy is also accessible from the Federal Flood Insurance Program, http://www.floodsmart.gov. Good news renters- flood insurance is also available for you.
Homeowners located within a standard Flood Zone (A, AE, V, etc.), are required by their lenders to obtain flood insurance. What many homeowners outside of a standard Flood Zone (A, AE, V, etc.) may not realize, is that while their lender may not require flood insurance, it is always a smart investment to protect your home against flood damage. According to the Federal Emergency Management Agency (FEMA), 25-30 percent of all losses occur in low- moderate risk zones. Most homeowners who would like flood insurance in the low to moderate risk zones are eligible for lower rates.
Flood Insurance typically covers the cost to replace your home, however it only covers the actual cash value for coverage of your possessions. Actual cash value refers to the value of the possessions to replace them MINUS the depreciation value.
Lenders require flood insurance for any home in a standard flood zone. Even if not required by your lender, we recommend obtaining flood insurance if your home has the potential to be flooded by a nearby river, a lake, or melting snow.
Flood Insurance Guide
Looking for more flood related information? Take a look into our flood insurance 101 guide for additional details.
Have other questions about home insurance or how to get started? Visit our FAQ page to see questions that have been posted by our customers. Or- post a question that you would like to see answered! Want to speak with one of our licensed agents? Enter your phone number here and one of our agents will call you. Or call an agent directly at 1-877-50-MyHome.
Last Updated: April 16, 2008 10:25 AM EST
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