What is flood insurance?
Homes and businesses located in communities that participate in the National Flood Insurance Program (NFIP) are eligible for flood insurance at a modest cost through the federal government. Under this program, insurance companies issue flood insurance and the federal government administers the program.
Flood insurance normally requires a 30-day waiting period from the time you sign up before the coverage is effective. Exceptions are only made for certain circumstances, such as if you're purchasing a home and the closing is in less than 30 days.
Why do I need flood insurance?
If you own property in a special flood hazard area (SFHA) and have a mortgage, federal law normally requires you to have flood insurance. If you live in a SFHA there is at least a one percent chance of flooding in any given year.
Many people think that flood insurance is just for properties on the water, like beach-houses. But unfortunately because of factors like the shape of surrounding land, the type of soil, and weather patterns, you don't need to have pelicans nesting in your back yard to be at risk for flooding.
What does a flood insurance policy cover?
Flood insurance covers the structure of your home and your personal property in the event of a flood. Typically long, heavy rain leads to the type of flooding that is covered by a flood policy.
