Who Needs Flood Insurance?

A very common question when first starting to talk about flood insurance is Who needs flood Insurance? All owners of insurance property should have flood insurance, this video will explain why.

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