Insurance Analysis

Flood Insurance

Flood insurance coverage protects your home against destruction caused by flood waters. Although you may think your home isn’t at risk of flooding, just inches of water can result in thousands of dollars in repairs and damaged assets – and homeowners insurance typically does not cover flooding. It’s worthwhile to note that 25% of flood insurance claims occur for homes that are not in high-risk areas for flooding!  So although it may not seem as essential as homeowners insurance, flood insurance is important for insuring your dwelling is safe and your belongings secure.  Flood insurance coverage provides protection against losses that result from extreme and lengthy rainfalls and storm surges, as well as problems that occur as a result of excessive precipitation (e.g., blocked drains).

The type of flood coverage you require may be structured on your home's locale and flood history:

  • If you live in a high-risk location – one labeled Special Flood Hazard Areas (SFHAs) – you are required to obtain flood insurance if your mortgage is from a federally-backed bank.
  • Standard Flood Insurance Coverage – If you reside in a community that participates in the National Flood Insurance Program (NFIP), your structure and its contents can be covered through a standard flood insurance policy. The NFIP was established through the Federal Government, and it aids communities which voluntarily participate by adopting and implementing floodplain management ordinances to decrease potential flood damage. To be considered a flood, the resultant waters must cross at least two acres or disturb a minimum of two properties. If you want to invest in a standard flood insurance policy, you will need to submit an application for building and contents insurance coverage separately.
  • Preferred Risk Policies – If your house or business is in a low- to moderate-risk zone, it may meet the requirements for buying a low-cost, preferred risk policy. Although you aren't required to purchase flood insurance within low- to moderate-risk areas, a preferred risk policy will shelter your home and its contents if you were to be affected by a minor to major flood that has extended into your low-risk locale. As stated above, up to 25% of flood insurance claims occur within low- to moderate- risk regions.

Don't wait until it truly is too late! Contacting Keystone Insurers Group will get you on the trail to flood protection with an inexpensive and comprehensive insurance policy.  Call us today at 814-629-5607!