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 Most homeowners policy will not cover damages caused by flooding. A "flood" is defined by the National Flood Insurance Program as an overflow of inland or tidal waters on normally dry land. All flood insurance premiums, as well as flood zones are determined by the NFIP.
Floods often happen when bodies of water overflow or tides rise due to heavy rainfall or thawing snow. But you don't have to live near water to be at risk of flooding. A flash flood, which can strike anywhere without warning, occurs when a large volume of rain falls within a short time.
- Some of the things a standard flood policy will cover include structural damage, surfaces such as carpeting and tile and the flood debris cleanup. You can also choose to add extra coverage for the contents of your home, such as furniture, collectibles, clothing, jewelry and artwork.
Policies are available in three forms: Dwelling (most homes), General Property (apartments and businesses), and Residential Condominium Building Association (condominiums).
Although flood insurance is generally not mandatory by law, it's important to know that if you have a federally backed mortgage on a home located in a high-risk area, federal law does require you to purchase flood insurance.
Did you know that 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. In 2006 one-third of all claims paid by the NFIP were for policies in low-risk communities. The most important thing you can do to protect yourself from financial loss is to have flood insurance. Floods can also pose life-threatening risks to you and your family. So be smart. Be FloodSmart. Be prepared for anything nature sends your way
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