Flood Insurance

The National Flood Insurance Program defines a flood as “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 your property) from:

• Overflow of inland or tidal waters;
• Unusual and rapid accumulation or runoff of surface waters from any source; mudflow; or collapse of 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 exceeding anticipated cyclical levels that result in a flood as defined above.

What Is Covered By Flood Insurance and What Is Not

Generally, your flood insurance policy covers physical damage to your building or personal property “directly” caused by a flood. For example, damages caused by a sewer backup are covered if the backup directly results from flooding. However, if some other problem causes the backup, flood insurance does not cover the damages. Instead, you need to purchase a special endorsement on your home policy called “water backup and sump overflow.”

For more detailed information about flood insurance and what’s covered, read the National Flood Insurance Program Summary of Coverage

30-Day Waiting Period

A 30-day waiting period usually applies before the policy becomes effective. Don’t wait until a threat presents itself to purchase protection. The only exceptions to this waiting period are:

• If a lender requires flood insurance in connection with making, increasing, extending, or renewing a loan.
• If a flood map revision requires an additional amount of insurance.
• If a lender determines that a loan that doesn’t currently have flood insurance coverage needs to have flood coverage.

Don’t Assume You Don’t Need Flood Protection

Consider these facts:

• Floods and flash floods happen in all 50 states.
• Floods are the #1 natural disaster in the United States.
• 20% to 25% of all flood insurance claims are filed in low- to moderate-risk areas.
• A 30-year mortgage carries a 26% chance of flooding, compared to a 9% chance of fire for buildings in high-risk flood areas.
• 90% of floods aren’t declared federal disasters, leaving the full cost of rebuilding to the home or business owner. Flood insurance protects you whether or not a disaster is declared.
• From 2016-2022, the average flood claim amounted to nearly $66,000.
• In 2023, the average flood insurance policy premium was about $939 per year.
• Homeowners in low- to moderate-risk areas may be eligible for the Preferred Risk Policy, with flood insurance premiums starting at $480 annually for $250,000 in coverage. Premiums for condominium and renter flood insurance are less.
• In 2022, The National Flood Insurance Program (NFIP) paid over $3.9 billion in flood insurance claims to all policyholders.

Source:  www.floodsmart.gov

Purchasing Flood Insurance

You cannot purchase flood insurance directly through the federal government.  Flood insurance can only be purchased through an insurance agent.  For more detailed information about flood insurance, visit the official website of the National Flood Insurance Program, www.floodsmart.gov

NOTE: This information is only a general description of the available coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements. Some coverage may be subject to individual insureds meeting underwriting qualifications and to availability within a state. For further information, contact us at Murphy Insurance Agency.