What's my flood risk?
Did you know everyone lives in a flood zone? 1 You don't need to live near water to be flooded. Approximately 25% of flood losses occur in low to moderate risk areas. 2 Would your home or business be protected in the event of a flood?
It doesn't matter whether your flood risk is high, medium, or low, you're eligible for Flood Insurance as long as your community participates in the National Flood Insurance Program. Given that most Homeowners, Condominium, Mobilehome, Renters, or Business Insurance Policies exclude flood coverage, a Flood Insurance Policy can help protect the most valuable asset you own: your home or your business.
What is a flood?
A flood can be defined as a general and temporary condition during which two or more acres of normally dry land area, or two or more properties, are partially or completely inundated. 3 A flood can result from:
- An unusual and rapid accumulation of surface water, or runoff, from any source such as a heavy rainstorm or melting snow.
- An overflow of inland or tidal waters.
- Storm surges caused by tropical storms or hurricanes.
- Mudflows resulting from surface water. 4
Leveled forests, overbuilt land, and an increased use of asphalt have reduced the soil's natural ability to absorb excess water, compounding the risk of disastrous flooding.
Why can't I rely on Federal Disaster Assistance?
What if there's a serious flood in your area? Don't rely on Federal Disaster Assistance alone. Less than 50% of all flooding incidents are awarded a Federal Disaster Assistance declaration. If the President declares a Federal Disaster Area, most disaster assistance is provided in the form of a loan that must be repaid – principal plus interest.
Some important facts about Federal Disaster Assistance are:
- The average individual and Family Grant payment is less than $2,500.
- The duration of a Small Business Administration (SBA) disaster home loan is approximately 20 years.
- The average loan payment on a SBA disaster home loan is $104 a month, or $1,250 annually.
- Repayment on a $50,000 SBA disaster home loan is $311 a month, or $3,730 annually. 5
What's the advantage of Flood Insurance protection?
If you experience a flood, your claim will be paid by your Flood Insurance Policy with no payback requirement like there would be for a Federal loan. Flood Insurance reimburses homeowners for all covered losses up to $250,000 for the building and $100,000 for contents. For businesses, Flood Insurance will pay up to $500,000 for the building and $500,000 for the contents. For renters, Flood Insurance will pay up to $100,000 for personal belongings. 6
Some important facts about Flood Insurance are:
- Depending on where you live, the average cost of a $100,000 Flood Insurance Policy is $350 annually , or less than one dollar per day .
- The average cost of a $50,000 Flood Insurance Policy is less than $200 annually , depending on where you live, or about 55 cents per day . 7
Here's another way to look at Flood Insurance costs:
- The average annual premium for $100,000 of Flood Insurance coverage is about the same as the average monthly payment for a typical $50,000 disaster home loan. 8
Our Companies participate in the National Flood Insurance Program (NFIP)
Would your home or business be protected in the event of a flood? If your community is a participant in the National Flood Insurance Program (NFIP), you have the opportunity to purchase National Flood Insurance coverage from an agent.
Excess Flood Insurance coverage may be available
Are you sure you're covered for any flooding event that may occur? In some states, if you purchase National Flood Insurance through our Companies and find you need more coverage than the maximum limit provided by the NFIP program, you may be eligible to purchase additional coverage through an Excess Flood Insurance* Policy from your agent.
What's Preferred Risk Flood Insurance coverage?
A Preferred Risk Flood Policy is designed for homeowners with properties located in low to moderate flood hazard areas who want to help protect their home and contents in the event of a flood. In order to qualify for a Preferred Risk Flood Policy, you need to own a one-to-four family dwelling in a low to moderate flood hazard area that meets certain requirements.
If your dwelling's flood loss history falls into any of the categories below, a Preferred Risk Policy cannot be written. These requirements apply since the date of construction and regardless of your dwelling's prior ownership:
- Two loss payments, each more than $1,000.
- Three or more loss payments, regardless of the amount.
- Two Federal Disaster Relief payments, each more than $1,000.
- Three Federal Disaster Relief payments, regardless of the amount.
- One flood insurance claim payment and one flood disaster relief payment (including loans and grants), each more than $1,000. 9
What's covered by a Preferred Risk Policy?
A Preferred Risk Policy provides the same coverage as a standard Flood Insurance policy: your building's structural elements can be insured up to $250,000 and the contents of your home can be insured up to $60,000. 10
Some important facts about Preferred Risk Flood coverage are:
- The cost of a $100,000 Preferred Risk Flood Insurance Policy is $246 annually , or less than 70 cents per day .
- The cost of a $50,000 Preferred Risk Flood Insurance Policy is $196 annually , or about 55 cents per day . 11
What are my coverage options? |
A standard National Flood Insurance Policy applies to a home, condominium, mobilehome,* rental or business property located in a Special Flood Hazard Area . It also covers properties in low to moderate risk areas that do not qualify for a Preferred Risk Policy. This includes non-residential and 5+ unit buildings. If you are eligible for a National Flood Insurance Policy, coverage is available for your building and personal property. The cost of Flood Insurance coverage depends on your flood zone risk area.
What coverages are included under a standard National Flood Insurance Policy?
The coverages available under a standard National Flood Insurance Policy include Building Coverage, Contents Coverage and Replacement Cost Coverage.
What's included under Building Coverage?
Building Coverage protects the structure of your home or business. It includes above-ground appliances and other items of property that are considered to be part of the building:
- Central air conditioners…refrigerators…walk-in freezers
- Built-in dishwashers…built-in microwaves…ranges, cooking stoves and ovens
- Hot water heaters…furnaces and radiators…garbage disposal units
- Awnings, blinds and canopies
- Carpet permanently installed over unfinished flooring
- Permanently installed cupboards, bookcases, cabinets, paneling and wallpaper
- Elevator equipment…fire sprinkler systems…light fixtures…plumbing fixtures
- Outdoor antennas and aerials fastened to buildings
In a basement , ** which is defined as any room where the floor is below ground on all sides , coverage is limited to the following:
- Furnaces…hot water heaters…water softeners…central air conditioners…heat pumps
- Utility connections…sump pumps…fuel and water tanks
- Unfinished structure…dry wall or sheet rock walls…fiberglass insulation
- Electrical wiring and circuit breaker boxes
- Clean-up after a flood
Clothes washers, dryers and food freezers located below ground , in a basement,** are not covered under Building Coverage. Contents Coverage can be purchased separately for these items.
What Building Coverage options are available?
- Residential homes can be insured up to a maximum of $250,000 under Building Coverage.
- Non-residential buildings can be insured up to a maximum of $500,000 under Building Coverage.
- Replacement Cost Coverage applies to single-family dwellings and residential condominium building associations . To qualify, the building must be your principal residence, it must be owner occupied, and it must be insured at the time of the loss for at least 80% of the building's replacement cost or the maximum coverage available, whichever is less. Condominium unit owners need to purchase Contents Coverage to cover personal property.
Contact your agent for a complete list of what's included under Building Coverage.
Why do I need Contents Coverage?
Flood claims data confirms that a foot of water can destroy 60% of a building's personal property contents. Flash flooding usually causes more damage to a building's contents than damage to the building itself.
You'll want to think about coverage for your personal property items as well as the structure of your building. Your personal belongings help make your house, apartment, condominium, mobilehome, or co-op unit a home. You don't want to risk loosing them in the event of a flood.
What's included in Contents Coverage?
Contents Coverage can be purchased for your personal property items located in the building above ground . Personal property items include:
- Clothing and furniture
- Portable or window-type air conditioning units
- Portable microwaves and portable dishwashers
- Carpets over finished flooring located above ground
- Carpets, not permanently installed, over unfinished flooring
- “Cook-out” grills
- Food freezers (other than walk-ins which are covered under Building Coverage)
- Clothes washers and dryers
Clothes washers, dryers and food freezers are only covered by Contents Coverage , whether they are located above ground , or below ground in a basement .**
How much Contents Coverage is available?
The maximum personal property Contents Coverage limit available is:
- Up to $100,000 for contents with a Standard Flood Insurance Policy
- Up to $60,000 for contents with a Preferred Risk Policy
Personal property contents are covered on an actual cash value basis. Replacement cost coverage is not available for contents. Please see your agent for details.
What loss avoidance measures are available?
The base insurance plan also includes up to $1,000 for reasonable expenses , such as sandbagging, incurred to protect your property from the imminent danger of a flood.
How do I qualify for Preferred Risk Flood Insurance coverage?
A Preferred Risk Flood Policy is designed for homeowners in low to moderate flood hazard areas who want to help protect their home and contents in the event of a flood. In order to qualify for a Preferred Risk Flood Policy, you need to own a one-to-four family dwelling in a low to moderate flood hazard area that meets certain requirements .
If your dwelling's flood loss history falls into any of the categories below, a Preferred Risk Policy cannot be written. These requirements apply since the date of construction and regardless of your dwelling's prior ownership:
- Two loss payments, each more than $1,000
- Three or more loss payments, regardless of the amount
- Two Federal Disaster Relief payments, each more than $1,000
- Three Federal Disaster Relief payments, regardless of the amount
- One flood insurance claim payment and one flood disaster relief payment (including loans and grants), each more than $1,000 1
What's covered by a Preferred Risk Policy?
For homes located in low to moderate flood hazard areas, a Preferred Risk Policy provides the same coverage as a standard Flood Insurance policy:
- Your building's structural elements can be insured up to $250,000
- The contents of your home can be insured up to $60,000
- Replacement cost coverage is also available for a single-family, primary residence. To qualify, your dwelling must be your principal residence, it must be owner occupied, and it must be insured at the time of the loss for at least 80% of the building's replacement cost or the maximum coverage available, whichever is less. 2
How do I qualify for Excess Flood coverage?
In some states, if you purchase National Flood Insurance through our Companies and find you need more coverage than the maximum limit provided by the NFIP program, you may be eligible to purchase additional coverage through an Excess Flood Insurance*** Policy |
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