FAQs: Flood Insurance
- Doesn't my homeowners insurance policy cover flooding?
- If my home is flooded, won't federal disaster assistance pay for my damages?
- Why do I need flood insurance, even though my community has never been flooded?
- I live on a hill so why would I need flood insurance?
- Is flood damage from wind-driven rain covered?
1. Doesn't my homeowners insurance policy cover flooding?
No. Flood damage is not typically covered by a homeowners insurance policy.
2. If my home is flooded, won't federal disaster assistance pay for my damages?
No. Federal disaster assistance often comes in the form of a low interest loan to help cover flood damage, not compensation for your losses. Even then, those loans are only available if the president formally declares a disaster.
3. Why do I need flood insurance, even though my community has never been flooded?
The National Flood Insurance Program states that between 20 to 25 percent of its claims are from outside high-risk flood areas. Poor drainage systems, rapid accumulation of rainfall, snowmelt, and broken water mains can all result in flood.
4. I live on a hill so why would I need flood insurance?
Floods can occur in any area, although to varying degrees. If you live on a hill or in an area that has never been flooded, your risk may be significantly reduced, but it is not eliminated.
Flooding can be caused by heavy rains, melting snow, inadequate drainage systems, failed protective devices such as levees and dams, as well as by tropical storms and hurricanes. Please make an informed decision about the flood risks you face before deciding not to purchase flood insurance.
5. Is flood damage from wind-driven rain covered?
No. When rain enters through a wind-damaged window or door, or comes through a hole in a wall or roof, the NFIP considers the resulting puddles and damage to be windstorm-related, not flood-related.
Flood insurance covers overflow of inland or tidal waters and unusual and rapid accumulation or runoff of surface waters from any source. However, the flood must be a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is yours). Although flood insurance specifically excludes wind and hail damage, the good news is that most homeowners insurance provides such coverage.
