Should All Homeowners Have Flood Insurance?
Flood insurance is not mandatory, or even necessary, for all homeowners, but it is a smart consideration for many. While your standard homeowners insurance may cover water damage from burst pipes or roof leaks, it generally doesn’t cover damage caused by flooding. This is where flood insurance comes in.
Flood insurance is especially important for those living in designated high-risk flood zones, where lenders may require it as a condition for mortgages. However, even homes in lower-risk areas can experience flooding due to heavy rain, rapid snowmelt or coastal storms. In fact, roughly 20% of flood insurance claims come from properties outside high-risk zones.
If you live in a region with very little risk of flooding, you might decide that flood insurance isn’t a priority. However, given the unpredictability of weather patterns, it’s probably worth considering. Some areas not designated as high-risk flood zones could still face occasional—and potentially catastrophic—floods.
We witnessed this just recently. Asheville, North Carolina, which is nearly 300 miles from the coastline and located at an elevation of 2,134 feet, was recently wiped out by Hurricane Helena. As North Carolina’s climatologist said on CNN, “If you live in a place that can rain, you live in a place that can flood.”
Can You Add Flood Insurance to Your Homeowners Policy?
Flood insurance is typically not included in standard homeowners insurance policies, but there are two main ways to obtain it:
- You can purchase flood insurance through the National Flood Insurance Program (NFIP), which is managed by FEMA. This program offers coverage to communities that participate in NFIP, including many in Massachusetts.
- Alternatively, some private insurers also offer flood insurance policies. While the NFIP is the most widely used source, private insurance might offer more coverage options or higher limits.
What Does Flood Insurance Not Cover?
It’s important to understand the limitations of flood insurance. While it typically covers damage to your home’s structure and its contents (up to a limited dollar amount) caused by floodwaters, it does not cover everything.
Flood insurance typically does not cover:
- Damage to property outside your home such as landscaping, septic systems, fencing, wells, swimming pools and outdoor structures like decks or patios
- Cash, precious metals, stock certificates and other valuable papers
- Personal property stored in basements
Talk with your insurance provider about supplemental insurance if you want to extend your coverage beyond the flood insurance policy’s coverage limits and scope.
We’re Here for You
Understanding flood risk can be confusing, especially if you don’t live in a high-risk area. But consider this: flooding is the most common natural disaster in the U.S. affecting every state. According to the Department of Homeland Security, 90% of natural disasters within the U.S. involve flooding, and floods inflict more economic damage and loss of life and property than any other natural hazard.
Our goal is to help you protect what’s important to you, whatever comes your way. As a local insurance agency, our agents are familiar with the specific risks in our region, so we can help you make the best decision for your circumstances. Schedule an appointment and we’ll help you evaluate your risks and recommend the type and amount of coverage you should have.