Flood Insurance

Floods can wreak havoc on your property and incur severe financial consequences. Furthermore, these potentially devastating incidents are among the most common ones that affect U.S. homeowners and may arise from many situations, including heavy rainfall and rapid snowmelt. Given the frequency of floods and their potentially devastating ramifications, securing suitable insurance coverage should be a top priority.

What Is Flood Insurance?

As its name suggests, this type of coverage is a specialized form of property insurance designed to offset financial losses caused by floods. This type of coverage fills a common coverage gap for many homeowners, as standard U.S. home insurance policies explicitly exclude floods as a covered peril. This means that unless you augment your coverage with flood coveage, you may need to pay for repairing your home and replacing your belongings out of pocket.

Do I Need Flood Insurance?

As noted, flood policies are typically excluded from standard home insurance policies, making it an advisable addition for most homeowners. However, there may even be times when coverage is required. Consider the following scenarios when you’re beholden to formal obligations:

• Suppose you’ve purchased your home with the assistance of a federally backed mortgage and are located in an area classified as being at high risk of flooding. In that case, coverage is typically required as long as your loan remains outstanding.
• Suppose you’ve received flood-related aid from the Federal Emergency Management Agency in the past. In that case, you’ll typically need to retain a flood policy if you wish to remain eligible to access additional resources in the future.

How Much Does Coverage Cost?

Your rates may ebb and flow depending on a multitude of criteria. Many carriers may consider the following:

• Location
• Structural details (e.g., age, building materials used and number of floors)
• Estimated cost of a full rebuild
• Value of insured contents
• Lot details (e.g., topography)
• Claims history
• Policy specifications (e.g., limits and deductibles)

We’re Here to Help

Contact the Rock Insurance Agency today to learn more about flood coverage or compare personalized quotes.