Flooding is one of the most common and costly natural disasters in the United States, but many homeowners mistakenly assume their standard home insurance policy covers it. Spoiler alert: It doesn’t. Flood insurance is a separate policy that protects your property from flood damage, and knowing whether you need it is crucial for your financial security.

Here’s a step-by-step guide to help you determine if flood insurance is right for you.

Understand Your Flood Risk

Flood risk varies significantly depending on where you live. FEMA’s Flood Map Service Center is a great starting point to assess your property’s risk level. The maps divide areas into different zones, such as:

  • High-Risk Zones: Often labeled as Zone A or AE, these areas have a 1% annual chance of flooding (also called a 100-year floodplain).
  • Moderate-to-Low Risk Zones: Zones B, C, or X are considered lower risk but not risk-free.
  • Special Flood Hazard Areas (SFHAs): If your property is in an SFHA and you have a federally backed mortgage, flood insurance is usually required.

Consider the Changing Climate

Flood risks aren’t static. Climate change is increasing the frequency and intensity of severe weather events, meaning areas previously considered low-risk might now face significant flooding threats. Even if your property isn’t in a high-risk zone, you might still want to consider coverage.

Check Local Flood History

Research past flooding in your area. Even if your property isn’t in a designated flood zone, historical data can provide valuable insights into whether you should prepare for potential flooding.

Evaluate Your Financial Risk

Flood damage can be expensive. According to FEMA, just one inch of water can cause up to $25,000 in damage to your home. Consider whether you could afford to cover such expenses out of pocket or if flood insurance would provide peace of mind.

Review Your Mortgage Requirements

If you have a mortgage on a property located in a high-risk flood zone, your lender may require you to carry flood insurance. However, even if it’s not required, adding a policy can still be a wise investment.

Understand What Flood Insurance Covers

Flood insurance typically has two components:

  • Building Coverage: Protects the structure of your home, including electrical and plumbing systems, built-in appliances, and foundation.
  • Contents Coverage: Covers personal belongings like furniture, electronics, and clothing.

The Bottom Line

Flood insurance isn’t just for people living on the coast or near rivers. It’s for anyone who wants to protect their home and belongings from the unexpected. By understanding your flood risk and exploring your options, you can make an informed decision that safeguards your financial future.

We can help! Contact us today to get quotes for this coverage and assess how much risk you need to plan to cover with your policy.