Until very recently, flood insurance policies were almost all written and funded by FEMA through the National Flood Insurance Program (NFIP). In December of 2022, the Federal Housing Administration began allowing buyers of properties located in a Special Flood Hazard Area (SFHA) the option to purchase private flood insurance.
What does that mean for me?
The short answer is that your options for flood insurance have expanded. The longer answer: there’s more information out there than there used to be, and it’s helpful to be familiar with it in the event your existing property, or one you have your eye on, is in a SFHA. Thankfully, we’re in the business of providing information so read on as we break down the key points we think you need to know about flood insurance in today’s market.
Do I even need flood insurance?
If your property is located in a SFHA, your lender (if you have a mortgage) will require you to carry flood insurance in order to purchase that property. But, even if you don’t have a mortgage, obtaining flood insurance after evaluating your property’s risk of damage may be a good idea. It’s important to recognize that the standard Homeowners Insurance policy does not cover flood damage, which could leave you vulnerable in the event of flood-related losses. Further, relying solely on emergency disaster relief can be a recipe for disaster in and of itself. Not only does money from disaster relief typically come in the form of a loan, but it is also almost never enough to fully indemnify you after a debilitating loss.
How do I choose a plan if I need coverage?
Your best resource when it comes to selecting the right coverage for your needs is your insurance agent. But, when you arm yourself with the information we’ve got for you here, you’ll be several steps closer to helping your agent identify exactly what you need and where to find it.
At the end of the day, if you need flood insurance, you have the power of choice behind you. With our professionals at your back, you can rest easier should the water start rising.
If you'd like a quote, give us a call or click our GET-A-QUOTE button at the top of this page. We're happy to assist you with any flood insurance needs you have.