Flood Insurance

There's something you should know: Flood losses are not covered by your homeowners insurance policy.

In the unfortunate event of a Flood, please see our Flood Claim Submission page for a step-by-step guide to help with the process.

Flood Protection
Flood waters have the power to damage not only your home and sense of security, but also your financial future. How can you protect your most important investment in case of flooding? FEMA has a Summary of Coverage document to help you better understand your flood insurance policy. See our Insurance Glossary for a list of common terms.

Option 1: Hope that you'll receive Federal disaster relief if a flood hits.
Many people wrongly believe that the U.S. government will take care of all their financial needs if they suffer damage due to flooding. The truth is that Federal disaster assistance is only available if the President formally declares a disaster. Even if you do get disaster assistance, it's often a loan you have to repay, with interest, in addition to your mortgage loan that you still owe on the damaged property.

Most importantly, you must consider the fact that if your home is flooded and disaster assistance isn't offered, you'll have to shoulder the massive damage costs alone. The bottom line is that if you're looking for secure protection from financial loss due to flood damage, Federal disaster assistance is not the answer.

Option 2: Buy flood insurance and stay protected no matter what.
When disaster strikes, flood insurance policyholder claims are paid even if a disaster is not Federally declared. Flood insurance means you'll be reimbursed for all your covered losses. And unlike Federal aid, it never has to be repaid.

In general, a policy does not take effect until 30 days after you purchase flood insurance. So, if the weather forecast announces a flood alert for your area and you go to purchase coverage, it's already too late. You will not be insured if you buy a policy a few days before a flood.

What is a flood?(source: Connecticut Insurance Department)
A flood is an excess of water (or mud) on land that is normally dry. The National Flood Insurance Program (NFIP) defines flood to be a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area, or of two or more properties (at least one of which is the policyholder’s property) from:

• Overflow of inland or tidal waters;
• Unusual and rapid accumulation or runoff of surface waters from any source;
• Mudflow; or
• Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining, caused by waves or currents of water exceeding anticipated cyclical levels.

Flood Risk Scenarios Tool from FloodSmart.gov  

What is flood insurance?(source: Connecticut Insurance Department)
Flood insurance is a special policy that is federally backed by the NFIP and available for homeowners, renters, and businesses since flood damage is not covered under a basic homeowners’ insurance policy.

Flood damage is not only the result of excessive rain or overflowing rivers, “storm surge” as a direct result of a hurricane is considered flooding as well.  Damage sustained from “storm surge” is not covered by a homeowners’ wind damage provision, however flood damage caused by excessive water would be covered under a flood insurance policy.

The standard flood insurance policy pays for direct physical damage to insured property up to the replacement cost or actual cash value (ACV) of actual damages or the policy limit of liability, whichever is less.

• Homeowners: Flood insurance policies cover up to $250,000 of flood damage to a home’s structure. A standard flood policy will cover structural damage, including damage to the furnace, water heater, air conditioner, floor surfaces (carpeting and tile) and debris clean up.
• Home contents such as washer, dryer, or freezer, are not covered under a standard flood policy.  However, coverage for up to $100,000 of flood damage to personal property is available, for an additional premium.
• Coverage for basements, crawlspaces and ground-level enclosures on elevated homes is limited. Be sure to ask an insurance agent about any restrictions in coverage.
• Renters: Since flood is not covered under a basic renters insurance policy, renters should talk with an insurance agent about flooding risks to decide if flood coverage for belongings is needed.
• Business owners: A basic flood insurance policy will cover up to $500,000 on a non-residential building.

How much does flood insurance cost?(source: Connecticut Insurance Department)
According to FEMA, the average homeowners flood insurance premium is approximately $500 a year.

Premiums for flood insurance will vary depending on risk level for a flood loss, the amount of coverage chosen, the type of coverage needed, and the preferred deductible.

Different deductibles for building property and personal property coverage may be available. The deductibles will apply separately to building property and personal property claims. Additionally, mortgage companies can require that a flood insurance deductible is no more than a certain amount.

Purchasing Flood Insurance           

Flood insurance can be purchased for a home or business regardless of whether the property is in a floodplain. Contact an insurance agent or company to find out if the local community participates in the NFIP. Also visit www.floodsmart.gov to get more information about flood risk by location.

Plan Ahead: Flood Insurance has a Waiting Period                                    

It is very important to plan ahead. A flood insurance policy normally will not go into effect until 30 days after purchase.

Additional Tips

• Make a home inventory: a home inventory i.e., a record of personal property, such as clothes, jewelry, furniture, computers and audio/video equipment. Photos and video of the home, as well as sales receipts and the model and serial numbers of items, will make filing a claim simpler. In addition, add insurance information to the inventory information; i.e., the name of the insurance company and agent, policy numbers and contact information.
• Prepare an evacuation plan:  For personal safety, identify what storm shelter is available, and prepare an evacuation plan.
• If evacuation is required, turn off all utilities and disconnect appliances to reduce the chance of additional damage and electrical shock when utilities are restored.
• Move all important documents to a safe location. Take them along during an evacuation or store them in a safe deposit box outside the area.
• Have an emergency kit:  Make sure the kit has bottled water, a first aid kit, flashlights, a battery–powered radio, non–perishable food items, blankets, clothing, prescription drugs, eyeglasses, personal hygiene supplies and a small amount of cash.
• Protect property from loss: Take proactive steps to protect property from loss. Be sure there is no loose siding, no damaged or diseased trees growing over or near the home.

The Cost of Flooding
The Cost of Flooding tool gives you an example of an estimate of loss.

 
Cost of Flooding Tool from FloodSmart.gov

Additional Information