Do I need Flood Insurance?

Flood insurance is a crucial part of any homeowners insurance policy plan. However, it can be complicated to figure out whether you need flood insurance. If you live in Florida, you have probably heard mentions of the term flood zones. Do flood zones determine if you need flood insurance? Or might it be better for everyone to protect themselves from flood damage? Here is a guide on whether you should get flood insurance for your home.

What is flood insurance? 

Flood insurance reimburses you for any water damage that has been caused by flooding. If your home or belongings have been damaged, the policy will cover you financially so you can make the costs of cleanups, repairs, or replacements of your belongings following a flood. 

The typical homeowners insurance policy does not cover flood damages. That is why the main reason for securing flood insurance coverage is if you live somewhere that is at risk for flooding. 

How much financial help can you get after a flood?

The exact numbers may depend on the policy you are covered under. If a flood occurs and a federal disaster has been officially declared for the catastrophic flooding event in your area, the government may provide a disaster grant. This is on average $5,000 per household, which is usually not enough. 

The average flood insurance claim payout per year is often more than $40,000 for flood damages that have been incurred. As you can see, the grant of $5,000, if you do not have insurance protection, is usually not enough for a family to recover from a flooding disaster. 

What counts as flood damage?

Flood damages typically include damages caused by high tides, hurricanes, storm surges, heavy rains, and any other kinds of flooding that are caused by natural disasters or sources. 

The problem with flooding is that even an inch of floodwater can cost you and your family up to $25,000 in damages. A lot of the time, it might be a good idea to procure flood insurance just in case so you can seek financial compensation for when a flood does hit. 

Homeowners insurance vs flood insurance

Typically, homeowners insurance will cover instances of water damage, such as if your pipes burst and flood your basement. However, it will not cover water damage that is due to natural flooding causes, such as flash floods, mudflow, coastal tides, high inland flooding, and more. 

If you own a house that might sustain flooding-related damages, it might be beneficial to see which insurance options are best for you. 

Added protection against flooding may be recommended for many, if not most, Florida property owners.

What if I’m renting?

A renters insurance policy may cause more hesitation, especially when it comes to whether you need flood insurance or not. The problem is, a renters insurance policy may not cover any flood damages. 

Typically, your landlord will have some sort of insurance policy in place for the entire building or living area. In these cases, you may still wish to get adequate protection for your personal belongings. You may want to consider a contents-only flood insurance policy so that you may file an insurance claim if your possessions get damaged or ruined in a flood. 

A contents-only flood insurance policy may cover articles and items such as furniture, clothes, rugs, electronic devices, and other covered items. 

Is there any homeowners insurance that covers flood damages?

It may be possible for you to add endorsements to your current homeowners policy. However, this will vary from company to company, and it may be best to consult with an agent to find out if this is the best option for you.

Flood zones

Flood zones are a way of classifying areas that are prone to flooding and can significantly affect your flood insurance premiums. While flooding can happen anywhere, an area designated as high risk for flooding, such as many regions in Florida, might mean that you should get flood insurance..

What is a flood zone?

According to the Federal Emergency Management Agency (FEMA), an area designated as a flood hazard region is called a Special Flood Hazard Area (SFHA). There are several levels of flood risk hazards. 

An insurance company might give you a quote based on where you live, your home’s flood risk, location, size, as well as many other influencing factors.

Mortgage lenders and flood coverage requirements

In some cases, even if it isn’t required by law, you might need flood insurance because of other requirements. For example, your mortgage lender might force you to get a flood insurance policy if you have a federally backed mortgage. If your house is in a FEMA-designated flood hazard area, the necessity of flood insurance becomes even more critical.  

Private vs public flood insurance

The National Flood Insurance Program (NFIP) is the government’s official federal flood insurance policy. Many insurance carriers will offer you flood insurance options through the federal NFIP, but some companies will also offer private flood insurance. 

In Florida, the insurance industry for flooding has evolved greatly in the last five years. A policy you may read a review about from a decade ago might not offer the same type of protection or be available now. It is always important to check the most up-to-date information on insurance so that you can get the most affordable rates with the best coverage for your home. 

How much does flood insurance cost?

According to the NFIP’s publicized statistics, the average cost of flood insurance is around $738 per year. The average flood insurance cost in Florida is around $562 per year, through NFIP, due to differences in state flood insurance expectations.

If you’d like lower rates and greater flexibility and control in terms of flood insurance coverage, a private flood insurance carrier may be preferable to you. 

Amount of coverage

The amount of coverage that your insurance will give depends on the exact policy you choose. Private and federal insurance policies may also differ in the amount of coverage offered. Be aware that flood damages can often cost you and your family tens of thousands of dollars in repair fees and more. 

Deductibles

Different policies will typically have differing insurance deductibles. It can be a difficult process to balance a reasonable deductible with a low rate. Worth Insurance’s team is here to help you get a free quote and quickly find you the insurance coverage that may be best suited for you. 

How to choose the best flood insurance

You can get help choosing the right flood insurance with Worth Insurance. Our team can find you the best rates from the top carriers in a timely and professional manner. 

Our experts in Florida flood insurance will be able to match you to quality insurance options that can help you fill the gaps in coverage for you and your family. 

If you need other kinds of specific coverage, such as homeowners insurance, auto insurance, or more, Worth Insurance also has your back. We’re the go-to agents for when you want insurance, fast, simple, and easy. 

Table of Contents

    More Articles

    To see how Worth can reduce your risk.

    Get a Free Quote

    © 2022 Worth Insurance. All rights reserved. 12300 FL A1AAlt #203, Palm Beach Gardens, Florida, 33410