Even without waterfront property, you may still need flood insurance. Find out why, and where to buy it.
Flood Insurance is important to consider, even if you don’t live in a zone currently.
There have been more cases of flooding in recent years, especially in areas that are not in a flood zone. Some business and homeowners in those areas did not have flood insurance, which can become a problem when it comes to repairing or replacing damaged homes and other buildings.
It takes just a few inches of floodwater to cause tens of thousands of dollars in damage. From 2011 to 2015, the average residential flood claim amounted to nearly $43,000, according to the National Flood Insurance Program. In 2015, the average policy premium was nearly $700.
Flood insurance is the best way to protect yourself from devastating financial loss, because without it - you are left to assume repair and replacement costs yourself.
“Some people assume that FEMA (the Federal Emergency Management Agency) or some entity will step in and cover the cleanup and repairs,” said Sam Rooks, vice president of underwriting and policy services for Virginia Farm Bureau Mutual Insurance Co. “The reality is if you don’t have flood insurance, you will be faced with making the repairs out of your own pocket.”
In general terms, a flood is a temporary condition where 2 or more acres of normally dry land or two or more properties—at least one of which is the policyholder’s property—are inundated by water or mudflow, explained Ted Joyce, director of Farm Bureau Insurance Agency Services. It could be caused by an overflow of inland or tidal waters; unusual and rapid accumulation or runoff of surface waters from any source; mudflow; or the collapse or subsidence of land along the shore of a lake or similar body of water.
“Your flood risk isn't just based on history. It’s based on many factors that include current weather patterns, natural changes in the environment and recent development in your community,” Joyce explained.
He said business owners and homeowners purchase flood insurance through an insurance agent; they cannot buy it directly from the NFIP, as it is an insurance policy and not an endorsement.
Flood insurance is available to homeowners, renters, condominium dwellers and commercial owners and renters. “You can insure both your buildings and the contents of them for flood coverage. Your business or home does not have to be located in a flood plain to purchase flood insurance,” Joyce added.
There typically is a 30-day waiting period between the date of a flood insurance purchase and the date the policy goes into effect. Most insurance policies exclude flood insurance.
For more information on flood risks and flood insurance, visit floodsmart.gov/floodsmart and contact a county Farm Bureau insurance agent near you.