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What is a flood?

Anywhere it rains, it can flood. A flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mud-flow  Many conditions can result in a flood: hurricanes, over-topped levees, outdated or clogged drainage systems and rapid accumulation of rainfall.

Just because you haven't experienced a flood in the past, doesn't mean you won't in the future. Flood risk isn't just based on history, it's also based on a number of factors: rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development.

Mortgage required flood insurance

Under federal law, the purchase of flood insurance is mandatory for all federal or federally related financial assistance for the acquisition and/or construction of buildings in high-risk flood areas (Special Flood Hazard Areas or SFHAs).

The amount of flood insurance coverage required by the Flood Disaster Protection Act of 1973, as amended by the National Flood Insurance Reform Act of 1994, is the lesser of the following:
  1. The maximum amount of NFIP coverage available for the particular property type,
  2. The outstanding principal balance of the loan, or
  3. The insurable value of the structure.

If the property is not in a high-risk area, but instead in a moderate-to-low risk area, federal law does not require flood insurance; however, a lender can still require it. It is also recommended since historically one-in-five claims come from these moderate-to-low areas. Note that if during the life of the loan the maps are revised and the property is now in the high-risk area, your lender will notify you that you must purchase flood insurance.

How we save our customers money

We have specialized in flood insurance for many years and saved many clients money. You commonly hear that flood insurance is all the same price and that is true if all the rating factors are the same. However, often times people who don't understand all of the underwriting characteristics of a flood policy will overlook information that can save their client money. Underwriting all flood insurance policies is not straight forward and can be very time consuming. We often spend hours researching maps for one quote. However, we usually have a positive outcome! We would like to offer you our services and will save you money if we can. If not, at least you know you are getting a great rate.

Flood insurance facts

  • Floods and flash floods happen in all 50 states.
  • Everyone lives in a flood zone. (For more information, visit our Flood Zones FAQs.)
  • Most homeowners insurance does not cover flood damage.
  • If you live in a Special Flood Hazard Area (SFHA) or high-risk area and have a Federally backed mortgage, your mortgage lender requires you to have flood insurance. (To find your flood risk, fill out the Flood Risk Profile.)
  • Just an inch of water can cause costly damage to your property.
  • Flash floods often bring walls of water 10 to 20 feet high.
  • A car can easily be carried away by just two feet of floodwater.
  • Hurricanes, winter storms and snowmelt are common (but often overlooked) causes of flooding.
  • New land development can increase flood risk, especially if the construction changes natural runoff paths.
  • Federal disaster assistance is usually a loan that must be paid back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month ($2,880 a year) for 30 years. Compare that to a $100,000 flood insurance premium, which is about $400 a year ($33 a month).
  • If you live in a moderate-to-low risk area and are eligible for the Preferred Risk Policy, your flood insurance premium may be as low as $129 a year, including coverage for your property's contents.
  • You are eligible to purchase flood insurance as long as your community participates in the National Flood Insurance Program. Check the Community Status Book to see if your community is already an NFIP partner.
  • It takes 30 days after purchase for a policy to take effect, so it's important to buy insurance before the floodwaters start to rise.
  • In a high-risk area, your home is more than twice as likely to be damaged by flood than by fire.
  • Anyone can be financially vulnerable to floods. People outside of high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding.
  • The average annual U.S. flood losses in the past 10 years (2002-2011) were more than $2.9 billion.
  • When your community participates in the Community Rating System (CRS), you can qualify for an insurance premium discount of up to 45%. Read more about CRS Ratings.
  • Since 1978, the NFIP has paid over $36.9 billion for flood insurance claims and related costs (as of 12/31/10).
  • Over 5.5 million people currently hold flood insurance policies in more than 21,000 communities across the U.S

Quote and Purchase Online

If your property is in an X, B or C flood zone you can quote and purchase your policy without speaking to one of our reps. If not, select the option for us to contact you and we will make sure you get the best rate. Click Here to Quote and Purchase Online