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3 June, 2021 0
Flood Insurance

Why Flood Insurance Is Necessary If You Live in California

Flooding due to extreme weather can cause serious damage to your home and personal belongings. Yet, your homeowners or renters insurance policy won’t protect you against financial loss resulting from flood damage. The need to consider flood insurance in California arises from the fact that this state is largely prone to flooding. Here is a look at why flood coverage is necessary if you live in California.

Flood Insurance Coverage in California (and Where to Get It)

The National Flood Insurance Program (NFIP) provides flood damage coverage in all states, including California. Homeowners can obtain this coverage through the NFIP or their private insurer. It’s much better to purchase the policy through a trusted insurance agent who understands your unique coverage needs.

A federally-backed flood policy has a limit of $250,000 for your property’s structure and $100,000 for personal belongings. It covers flood-related hazards such as:

  • Tidal or inland water flooding during heavy rains
  • Mudflow onto usually dry land
  • Levee breach
  • However, your California flood insurance coverage excludes certain damages/losses, including:

  • Basement damage
  • Additional living expenses, such as staying at a hotel while you rebuild your home
  • Your damaged car as you’d need to carry a comprehensive auto insurance policy to protect your vehicle against flooding damage
  • Damage due to earth movement, even if flooding caused it (this includes property losses or destruction after a flash flood triggered a landslide or sinkhole)
  • Is Flood Insurance Needed in California?

    Many counties in California are at a high risk for extreme weather events that cause flooding. You need this coverage primarily because your homeowners insurance (or renters policy) won’t cover damage to your home if flooding caused it. You’d be in a difficult financial situation as the government might not assist you unless the damage is widespread and severe enough to warrant a federal disaster declaration.

    Without flood damage protection, you may have to spend thousands of dollars out of pocket to restore your home or replace your damaged personal belongings.

    Secondly, mortgage lenders will require you to have flood insurance if you live within a high-risk flood zone. You won’t qualify for a federally backed home loan without the NFIP coverage if you’re buying a house within a zone that starts with A or V.

    Mortgage applicants residing within Zone B, X, or C don’t usually need to obtain flood insurance. The possibility of floods occurring in these areas is less than one percent annually.

    To know whether your house falls within an area that mortgage lenders would designate as a high-risk flood zone, refer to the Federal Emergency Management Agency’s Flood Maps.

    What Is the Cost of Flood Insurance in California?

    On average, federally-backed flood insurance in California costs $779 per year. The exact cost for you may be higher or lower depending on factors like:

  • Your property’s flood zone
  • The age and structure of your home (you’ll pay higher NFIP flood insurance premiums if your house has a basement)
  • Paying a higher deductible lowers your flood insurance premiums
  • If you purchase your flood insurance policy through the NFIP, you can choose a deductible amount between $1,000 and $10,000. This figure is the money you’re agreeing to pay out of pocket to replace or repair your property in case of flood damage.

Note that your NFIP flood insurance costs will be the same regardless of the carrier through which you purchased your policy.

It’s important to obtain flood insurance in California because your homeowners or renters policy won’t cover your property against flood damage. For help obtaining your NFIP’s flood insurance coverage, contact the team at Fuller Insurance Agency in California today. We are eager to assist you with your specific coverage needs.

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