Do I need flood insurance?

Flood insurance is actually mandated by the federal government if you live in a high-risk flood zone. In high-risk areas, you risk of having a flood situation during a 30-year mortgage time frame is calculated at a 1 in 4 chance. Unfortunately, consumers who actually do not live in the designated high-risk areas file more than 20 percent of flood insurance claims. That said, covering your home in the event of a flood can be a good idea regardless of the map and can save you a destructive financial loss.  Just a few inches of floodwater in your home can cause thousands of dollars worth of damage.

Flood insurance is available to homeowners, renters, condo renters and owners and commercial owners and renters. Cost is dependant on how much insurance is purchased the risk factor and what is covered. Most polices will cover both the structure and the contents but personal property may need to be considered as well.

Keep in mind; deductibles will be separate for both the building and the contents.

List of basic coverage for a building:

  • The insured building and its foundation.
  • Electrical and plumbing systems.
  • Central air-conditioning equipment, furnaces, and water heaters.
  • Refrigerators, cooking stoves, and built-in appliances such as dishwashers.
  • Permanently installed carpeting over unfinished flooring.
  • Permanently installed paneling, wallboard, bookcases, and cabinets.
  • Window blinds.
  • Detached garages (up to 10 percent of building property coverage; other than garages, detached buildings require a separate building property policy).
  • Debris removal.

What is not covered (may surprise you):

  • Damage caused by moisture, mildew, or mold that could have been avoided by the property owner.
  • Currency, precious metals, and valuable papers such as stock certificates.
  • Property and belongings outside of an insured building, such as trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools.
  • Living expenses, such as temporary housing.
  • Financial losses caused by business interruption or loss of use of insured property.
  • Most self-propelled vehicles, such as cars, including their parts.


Information from