Author: Tracy A. Joe – Senior Account Representative at EHD

It is a tough question to answer. Many homeowners are unaware that their homeowners insurance does not provide coverage for flood losses. Flood insurance is written as a separate policy and is sold by the government. You may believe that because you are not in a high risk area; you will never have a flood loss. The Federal Emergency Management Agency (FEMA) reports that approximately 25% of all flood claims happen in low to moderate risk areas. Just because you haven’t experienced a flood in the past, doesn’t mean you won’t in the future. FEMA continually updates the flood maps, so even if you were not in a high risk area before, you could be now.

You might ask the question, what is the definition of flood? According to the National Flood Insurance Program, a flood is a “general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or two or more properties (one of which is yours) from:

*Overflow of inland or tidal waters

*Unusual and rapid accumulation or runoff of surface waters from any source

*Mudflow

*Collapse or subsidence of land along the shore of a lake or similar body of water as a Result of erosion or undermining caused by waves or currents of water

There are many causes of flooding. They include flash floods, heavy rains, ice jams, mudflows, new development, snow melt, tropical storms and others. Could one of these happen where you live? The answer is yes, it could. Floods can happen just about anywhere. Flooding is the most common and most expensive natural hazard.

There are many misconceptions with regards to flood insurance. One is that you must be in a “high” risk area to purchase flood insurance. As long as your community participates in the National Flood Insurance Program, you should be able to purchase flood insurance. Participating communities must agree to adopt and enforce floodplain management regulations, including construction and zoning laws minimizing the risk of flood damage. Contact your agent to find out if your community participates. Another misconception is that the government will bail you out if there is a flood and you do not have flood insurance. Don’t assume that this is true. Even if federal disaster assistance is available, the loan must be paid back and with interest!

If you are in a low to moderate risk area, you may qualify for preferred flood rates which are lower than you might think. The maximum limit of insurance that you can purchase for your home is $250,000. If your residence value is more than that, you should discuss excess flood insurance with your agent. If you are considering purchasing flood insurance, keep in mind that coverage does not take effective until 30 days AFTER your purchase the policy.

For more information about flood insurance, visit FEMA’s website www.floodsmart.gov. For insurance questions, don’t hesitate to call us at 717.394.5681.