California is one of the flood-prone states in the U.S. In fact, every county in the state of California has, at some point, been declared a high flood-risk area. According to experts, just a one-inch flood is enough to cost up to $25,000 in property damage. This means that in case of a huge flood, the damage caused may be too catastrophic. Unfortunately, the standard homeowners insurance policy does not cover financial losses associated with flood damage, according to the Insurance Information Institute (III). To protect your home from flood damage, you have to purchase the right flood insurance
. Read on to understand why this coverage is important and where you can get it.
If you live in a flood-designated zone and have a government-backed mortgage, the federal government requires you to carry flood insurance
, says the Federal Emergency Management Agency (FEMA). However, flood insurance is also important even if you live in a moderate-to-low-risk area. This is because floods can also result from heavy rains, sewer backup, or burst pipes, causing a substantial financial burden. Take note that some private mortgage lenders may also require you to have flood insurance coverage.
It Covers a Gap in Your Home Insurance Coverage
According to the National Association of Insurance Commissioners (NAIC),
about 25% of floods occur outside designated high-risk areas. This means that regardless of your location, your home can still suffer flood-related damage. As mentioned earlier, the typical homeowners insurance policy does not cover flood damage. It is worth noting that your home insurance policy has coverage gaps when it comes to flooding, especially weather-related flooding.
Unforeseen Flood Risk
Over the past few years, there have been massive changes in weather patterns, leading to the rise of unpredicted floods in the U.S. Essentially, if you live near a lake, river, ocean, reservoir, or any other water body, your home may be at risk of flood damage. As such, you need to protect it with the right flood insurance.
How to Get Flood Insurance
The cost of flood insurance is high in the U.S., particularly in designated flood-prone areas. The following are a few flood programs through which you can get the right flood insurance for your home.
National Flood Insurance Program (NFIP)
Managed by the Federal Emergency Management Agency (FEMA), the National Flood Insurance Program (NFIP) provides government-backed flood insurance to homeowners, renters, and businesses from participating communities. This program aims at lowering the flood risk in areas by offering subsidized flood insurance to eligible communities. To be eligible for this program, you must be part of a community that practices flood control and restricts flood development in high-risk areas. Take note that FEMA has a list of insurance companies from which you can access flood insurance through the NFIP program, provided you qualify. Unfortunately, the cost of NFIP flood insurance has been increasing steadily in the recent past, and therefore, you may want to consider private insurance.
Private Flood Insurance
Currently, more private insurance companies are entering the flood insurance
market. As such, you can access cheaper flood insurance from a private insurer. Since insurance companies typically calculate insurance costs based on individual cases, you can get a more reasonably-priced policy if you live in a low-risk area. Other tips to get more affordable coverage include, among others, asking for discounts, comparing rates from different insurance companies, and making your home more resistant to flood damage.
Even if you don’t live in a high-risk flood zone, you may need flood insurance
. For help obtaining the right flood insurance coverage, contact the team at Fuller Insurance Agency
in California today. We are eager to assist you with your specific coverage needs.