Floods can happen anywhere — even in areas with low-to-moderate flood risk. Flooding and cyclone events (e.g., hurricanes) are the most common and costly disasters in the United States, causing billions of dollars in damage each year.
Coverage is crucial because:
• 99 percent of U.S. counties have experienced a flood since 1998, and over 40 percent of flood insurance claims come from outside high-risk flood areas.
• Just 1 inch of water can cause roughly $25,000 of damage to your property.
• Most homeowners and renters insurance policies do not cover flood damage—only flood insurance can financially protect your building and contents from a flood event.
• Unexpected flood events — such as ponding or sewer backup—can happen in communities far from waterways due to new land use or community development.
Disaster Assistance
In the event of a presidential disaster declaration, you may be able to receive federal disaster assistance. Most of this aid comes from low-interest disaster loans from the U.S. Small Business Administration (SBA) that must be repaid with interest or as grants from FEMA
Having your own flood insurance policy may provide significantly more funds for recovery than federal disaster assistance. Between 2016 and 2022, the average FEMA disaster assistance grant award was $3,000. In the same period, the NFIP paid an average claim amount of more than $66,000. In some cases, policyholders may be eligible to couple their flood insurance claims with federal disaster assistance.
How to Buy
Be sure to purchase flood insurance as early as possible to prepare for emergencies, as there is typically a 30-day waiting period between the purchase of a policy and when it becomes effective.
Your homeowners or renters insurance agent should be able to sell you a flood insurance policy.
Questions to Ask Your Insurance Agent
Use the following questions as a guide when discussing flood insurance with your agent:
• What is my property’s flood risk?
• Is flood insurance mandatory for my property?
• Will my mortgage lender require flood insurance?
• What flood damage will and won’t be covered by my homeowners insurance policy?
• What is the difference between a private flood insurance policy and an NFIP flood insurance policy?
• Does my community participate in the NFIP’s Community Rating System (CRS)?
• Learn more about CRS.
• How much coverage should I purchase for my building and contents?
• When will my policy become effective?
• What is the term or length of my policy, and how do I pay for or renew it?
• Will my policy provide coverage based on Replacement Cost Value (RCV) or Actual Cash Value (ACV)?
• How are the two different?
Provided by FEMA
For additional assistance, chat live with a specialist from 9 a.m. to 5 p.m. ET Monday-Friday, email FEMA-FMIX@fema.dhs.gov or call 877-336-2627.
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