Most home owners do not realize flood losses are not covered by your home policy. It is a common misconception that home insurance covers damages that arise from a flood (flowing water).
Why might you need flood insurance? Every year floods damage homes and property. Most of the damage happens within the flood zones. However, just because you are not in a flood zone does that mean that you are safe and will never need flood insurance. Is your home is in an Arizona flood zone?
National Flood Insurance
Congress established the National Flood Insurance Program (NFIP) in 1968 as a way to provide protection to consumers. While we will issue your flood insurance policy for you, all flood policies are written through the NFIP.
The following statistics are provided by F.E.M.A.:
Your home has a 26% chance of being damaged by a flood during the course of a 30-year mortgage, compared to a 9% chance of fire. About 25% of all flood claims are for policies in low-to-moderate-risk communities. Since 1978, over $31 billion for flood insurance claims and related costs have been paid.
Over 5 million people currently hold flood insurance policies in more than 20,000 communities across the U.S.
A “flood” as described by the NFIP is simply the collection of excess water on land that is normally dry.
Who Needs Flood Insurance
You don’t have to live near a river or ocean to be at risk for a flood. In Arizona, most types of floods occurs from a flash flood, which can strike anywhere at any time when a large volume of rain falls within a short time. Even a couple inches of rain can cause your home to suffer flood damage.
A standard flood policy will cover structural damage, furnace, water heater and air conditioner, flood debris clean up, and floor surfaces. You can also buy added coverage for furniture and other personal property.
If you live in an area considered a high-risk area and you have a mortgage that is secured by the federal government, federal law requires you to purchase flood insurance. Typically, your mortgage company will inform you during the closing process or your real estate agent during the purchase process if your home is in a flood zone.
Flood Insurance Coverage
A homeowner can get coverage on their flood insurance for up to $250,000 and contents for $100,000. A renter can cover their belongings for up to $100,000. Give your insurance agent a call to get started on your Arizona flood insurance quote.