What do I need to know?
Everybody has some level of risk from flooding and should consider a certain level of flood insurance coverage. Everyone lives in a flood zone and may be vulnerable to excess rainwater, storms, river levels, and other factors. The NFIP policy premiums are based on a number of factors, including:
- Flood risk (e.g., your flood zone)
- The type of coverage being purchased (e.g. building and contents coverage)
- The deductible and amount of building and contents coverage
- The location of your structure
- The design and age of your structure
- The location of your structure’s contents (e.g. Are your utilities elevated?)
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.