Did you know that of all the natural disasters that occur in New Hampshire, Maine, and Massachusetts, flooding happens the most frequently, and causes the most damage? Around our office rarely a day goes by that a customer doesn’t come in or call about whether they should add flood insurance to their coverage portfolio. And when we see that they live right here in the New England area, our answer is a resounding yes.
Do I truly need flood insurance?
If you have a mortgage, some banks require that you do. Regardless, If you live in certain areas that are designated flood zones, you absolutely should have a flood policy. This is because some neighborhoods lie within the Federal Emergency Management Agency’s (FEMA) Flood Hazard Zones, and as such, lenders require all borrowers to purchase flood insurance.
If you don’t have a mortgage, or if your property is near water or could have be a path for water like downstream from rivers, lakes, etc, then flood insurance may also make sense.
Flood Hazard Zones versus Flood Risk Zones — What’s the Difference?
A Flood Hazard Zone is one that FEMA, Federal Emergency Management Agency, shows has a 1% higher chance of annual flooding. This translates to a 26% risk throughout a 30-year mortgage. Any homes within a flood hazard zone are required to have flood insurance in place to secure a mortgage.
A Flood Risk Zone, as defined by FEMA, is one in which the chances of annual flooding are less than 1%.
A Sad Fact About Homeowners Insurance
Many customers believe that their homeowners policy provides flood coverage. Homeowner Insurance policies do not cover floods.
Flood Insurance – Frequently Asked Questions
- Is flood insurance included in my homeowners or renters policy?
No. Standard homeowners and renters policies do not cover flood damage. Flood insurance must be purchased as a separate policy, typically through the National Flood Insurance Program (NFIP) or a private insurer. Our agency can support you by discussing these options and providing quotes, etc. - What does flood insurance cover?
Flood insurance covers direct physical damage to your building and contents caused by flooding, such as rising water from heavy rain, overflowing rivers, storm surge, or melting snow. - How is “flood” defined in insurance terms?
To qualify as a flood, the water must cover at least two acres or affect two or more properties and must come from overflow, rapid accumulation, mudflow, or collapse of land due to water erosion. - Who needs flood insurance?
Anyone in a flood-prone area should consider it. If you live in a high-risk flood zone and have a mortgage from a federally regulated lender, you’re required to carry flood insurance. - Can I get flood insurance if I’m not in a high-risk flood zone?
Yes! In fact, over 20% of flood claims come from properties in low-to-moderate risk zones. Premiums are usually lower in these areas, and coverage is still important. - How much does flood insurance cost?
Costs vary depending on your location, elevation, building type, and coverage amount. Homes in low-risk zones often pay significantly less than those in high-risk areas. - What is not covered by flood insurance?
Basement improvements (like carpeting or finished walls), mold or mildew not caused by the flood, temporary housing, and vehicles are not typically covered. Talk to your agent for details. - Is there a waiting period for flood insurance to take effect?
Yes. NFIP policies have a standard 30-day waiting period from the date of purchase. Private flood insurance may offer shorter or no waiting periods—check with your agent. - How do I know if I’m in a flood zone?
You can check your flood zone using FEMA’s Flood Map Service Center (msc.fema.gov), or ask your insurance agent to perform a zone lookup for your address.
