According to FEMA, floods are the most common natural disasters in the US. On average, floods cause around $6 billion in property damage: just a few inches of floodwater can cause tens of thousands of dollars in damage. A flood does not have to be catastrophic to result in high out-of-pocket costs: 20% of claims occur in moderate to low-risk areas.
Is Flood Insurance Mandatory?
It depends. Some homes are in mandatory flood zones. However, all properties are at risk – more than 20% of claims come from properties outside of the mandatory zone. Even if you live outside of the mandatory areas, the Federal Government has a low-cost option that subsidizes your policy and can potentially start as low as $15 per month. You can check whether you are in a mandatory flood zone on our risk tool.
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
Most properties are eligible for a lower-cost Preferred Risk Policy