Heard about flood insurance? Wondering how it works and what it covers?
We checked with the Federal Emergency Management Agency for some answers.
We know: All About Flood Insurance
Why does a home or business owner need flood insurance?
Floods are the #1 hazard in the United States, but homeowners insurance does not cover flooding. Flood insurance can insure your home and contents, or business and contents against flood damage.
What's flood insurance?
Created by Congress in response to the rising cost of disaster relief for flood victims, the National Flood Insurance Program (NFIP) reduces flood losses and provides financial protection to home and business owners. This federally-backed flood insurance is available to homeowners, renters, and business owners in many areas through private insurance companies.
What does residential National Flood Insurance cover?
Residential building coverage insures a house or dwelling, attached and detached garages, as well as certain permanently installed fixtures such as built-in dishwashers, permanent shelving and cabinetry, furnaces and radiators, hot-water heaters, plumbing fixtures, stoves, ovens and refrigerators.
Residential coverage of the basement includes structural elements, essential equipment and other basic items normally located in a basement.
Residential contents coverage insures most of your personal property and belongings.
Who can get coverage?
Coverage is available for homeowners, renters, business owners, and condominium associations and owners.
How much does flood insurance cost?
The average flood insurance premium is about $370 a year. Your specific premium will be determined by such factors as where you live; how much coverage you choose; the age, elevation and structure of your home; the building occupancy; and the deductible.