12 Things Homeowners Should Know About Flood Insurance

In 2017, Hurricane Harvey caused devastating flooding in Texas, resulting in 82 deaths and $125 billion in damages. Many homes were left unprotected, highlighting the importance of flood insurance.

Floods are the most common and costly natural disasters in the U.S., and they can happen anywhere, not just in floodplains. Homeowner’s insurance typically covers fire, hail, and windstorm damage but not flooding. To protect yourself financially, it’s essential to understand your flood risk and insurance options.

Here are 12 key facts every homeowner should know:

1. Homeowner’s Insurance Doesn’t Cover Flooding: Standard policies don’t include flood damage, even if they cover other types of water damage.

2. Flood Insurance Is Federally Backed: The National Flood Insurance Program (NFIP) provides flood insurance, which you purchase through a private insurer.

3. Federal Aid Is Limited: Not all disasters trigger federal aid, and most assistance comes as loans that must be repaid. Flood insurance payouts don’t require repayment.

4. There’s a 30-Day Waiting Period: Flood insurance generally takes 30 days to become active, so plan ahead.

5. Flood Zones Can Change: Your home’s flood risk can evolve over time, so it’s important to stay informed about your current flood zone status.

6. Flooding Can Happen Anywhere: You don’t need to live in a designated flood zone to experience flooding or buy flood insurance. Over 20% of claims come from low-risk areas.

7. You May Be Required to Have Flood Insurance: Lenders may require it for mortgages in high-risk areas. If you accept federal disaster assistance, you must maintain flood insurance to qualify for future aid.

8. Flood Insurance Costs Around $700 a Year: Premiums vary based on your home’s value and flood risk, with discounts available in some cases.

9. Premiums Must Be Paid in Full Annually: Unlike homeowner’s insurance, flood insurance requires a lump-sum payment upfront.

10. Understand Your Coverage: Flood insurance for your home’s structure and contents are separate. Structures are covered for replacement cost, contents for actual cash value. Vehicles and living expenses are not covered.

11. Coverage Limits Exist: The maximum coverage is $250,000 for the structure and $100,000 for contents. Consider additional coverage if your home’s value exceeds these limits.

12. Steps Can Lower Your Premium: Improvements like elevating your home can reduce your flood risk and insurance costs.

Old Republic Title doesn’t offer flood insurance, but protecting your property is crucial. For more information, visit the National Flood Insurance Program website or call 1.800.427.4661.

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