Who Needs Flood Insurance?

Why Do I Need Flood Insurance?

All homes, regardless of flood zone, are at risk of flooding. Over the last five years every state has experienced flooding. Consider these 4 facts:

• FEMA advises that just one inch of water can cause $25,000 in damage

• More than 20 percent of flood claims come from properties outside of high-risk flood zones

• Only 20% of impacted homeowners from Hurricane Harvey in 2017 had flood insurance

• Federal Disaster assistance comes in the form of loans that must be paid back with interest and FEMA grants only provide about $5,000 average per household. By comparison, the average flood claim in 2022 was more than $87,000

Is Flood Insurance Mandatory?

It depends. Some homes are in high-risk flood zones, where mortgage lenders will require the property owner to purchase and maintain flood insurance during the life of the loan. However, all properties are at risk – more than 20% of claims come from properties outside of the high-risk flood zones. Even if you live outside of the high-risk areas, you are still at risk of flooding.

What Else Do I Need to Know?

• Homeowners and renters insurance does not typically cover flood damage
• During a 30-year mortgage, you are 27 times more likely to experience a flood than a fire
• When voluntarily purchased, your flood policy will have a 30-day waiting period