Most homeowners policies don't cover damage from flooding. The federal government's National FLood Insurance Program (NFIP) offers flood insurance through more than 85 companies. If you decide you need flood protection, contact your insurer right away as there is typically a 30 day waiting period before the policy covers you.

If your insurance agent is unfamiliar with the NFIP, or is not licensed to sell flood insurance from the NFIP, you have two additional options:

When flood insurance is required
If you buy a house in a designated high-risk flood zone and receive a mortgage loan from a federally regulated or insured lender, your lender is legally bound to require you to get and maintain flood insurance.

When flood insurance is not required
If you have a home of business in a low-or-moderate risk flood zone, flood insurance is not required. However, flood insurance is still available and you may be eligible for a low-cost Preferred Risk Policy.

{dybanners}16{/dybanners}

30-Day Wait
There is a standard 30-day waiting period, from date of purchase, before a new flood policy goes into effect. However there are some exceptions to the 30-day wait.

• If your lender requires flood insurance in connection with the making, increasing, extending or renewing of your loan.
• If an additional amount of insurance is required as a result of a map revision.
• If flood insurance is required as a result of a lender determining that a loan, which does not have flood insurance coverage, should be protected by flood insurance. The coverage will be effective upon the completion of an application and the presentment of payment of premium.
• If an additional amount of insurance is being obtained in connection with the renewal of a policy.

Buying Insurance
When you are ready to purchase insurance, talk to your agent. He or she will help you determine the flood insurance coverage that will best meet your needs.

{dybanners}12{/dybanners}

Flood Facts

• Floods and flash floods happen in all 50 states
• Everyone lives in a flood zone.
• Most homeowners insurance does not cover flood damage.
• If you live in a Special Flood Hazard Area (SFHA) or high-risk area and have a Federally backed mortgage, your mortgage lender requires you to have flood insurance. (To find your flood risk, fill out the Flood Risk Profile to the left.)
• Just an inch of water can cause costly damage to your property.
• Flash floods often bring walls of water 10 to 20 feet high.
• A car can easily be carried away by just two feet of floodwater.
• Hurricanes, winter storms and snowmelt are common (but often overlooked) causes of flooding.
• New land development can increase flood risk, especially if the construction changes natural runoff paths.
• Federal disaster assistance is usually a loan that must be paid back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month ($2,880 a year) for 30 years. Compare that to a $100,000 flood insurance premium, which is about $400 a year ($33 a month).
• If you live in a low-to-moderate risk area and are eligible for the Preferred Risk Policy, your flood insurance premium may be as low as $119 a year, including coverage for your property's contents.
• It takes 30 days after purchase for a policy to take effect, so it's important to buy insurance before the floodwaters start to rise.
• Your home has a 26% chance of being damaged by a flood during the course of a 30-year mortgage, compared to a 9% chance of fire.
• Last year, one-third of all claims paid by the NFIP were for policies in low-risk communities.
• The average annual U.S. flood losses in the past 10 years (1994-2004) were more than $2.4 billion.
• When your community participates in the Community Rating System (CRS), you can qualify for an insurance premium discount of up to 45%.
• The NFIP awarded over $16 billion in flood claims in 2005.
• Since 1978, the NFIP has paid $31.4 billion for flood insurance claims and related costs (as of 3/31/06).
• Over 5 million people currently hold flood insurance policies in more than 20,200 communities across the U.S.