Your standard Homeowners, Dwelling, or Commercial Property policy does not cover flood damage. Only a flood insurance policy covers damages to your home or commercial property from floods. Contents coverage is available, but optional.
Flood refers to normally dry areas which have temporarily been covered in whole or in part by overflowing inland or tidal waters, rapid run-off of surface waters (such as heavy rains), mud (flows or slides) or waters present due to the collapse or subsidence of shores. However, the collapse or subsidence must be due to the action of water, such as erosion. Only one dwelling or condo-unit may be covered under a single flood policy.
The Federal Emergency Management Agency (FEMA) provides flood insurance through the National Flood Insurance Program (NFIP). And because the federal government sets flood insurance rates, your premium will be the same no matter who provides it.
Under the National Flood Insurance Act, lenders must require borrowers whose property is located within a high-risk (Special Flood Hazard Area or SFHA) flood zone to purchase flood insurance as a condition of receiving a Federally-backed mortgage loan.
Flood coverage is available for home, condo and business owners, as well as for renters and businesses.
Federal assistance is only available in a Presidentially-declared national disaster. Less than 50% of all floods qualify.
If you are uninsured and receive Federal disaster assistance after a flood, you must purchase flood insurance to remain eligible for future disaster relief.
The average Federal grant for flood damage is around $2,500. How much of your property would that replace? If you receive a Federal disaster loan, it must be repaid, with interest!
Most new flood policies have a 30-day waiting period, so don't wait until the last minute. Plan ahead!