What is the most common type of natural disaster that impacts the U.S.? Responses might change depending on who you ask and where they live, but there is an objective answer: flooding.
According to the Department of Homeland Security,90% of natural disasters within the U.S. involve flooding, and Florida sits near the top of the list of states most impacted.
Home insurance doesn’t cover flood damage, so homeowners who live in a designated flood zone or simply want peace of mind must procure flood insurance separately, further driving up astronomically high insurance prices.
Citizens Property Insurance will require all of its policyholders to purchase flood insurance by 2027.
Not sure where to start with flood insurance? Here’s what you should know.
Is flood insurance in Florida mandatory?
Nope. Florida has no laws that mandate that homeowners must procure flood insurance, though mortgage companies certainly have requirements.
Property that presides inside a flood zone X is typically not required to obtain flood insurance policies. A flood zone X is an area of minimal flood risk outside the 0.2% annual chance floodplain and includes all of Florida.
Homeowners purchasing a home whose property limits are even partially inside just about any other flood zone will likely be required to get a flood policy by their mortgage company.
Flood damage disclosure:Do you know if your home ever had flood damage. This new law will require flood disclosure
Do you need flood insurance if you have home insurance?
A typical homeowners insurance policy (HO3) in Florida does not cover flood damage. So, if your mortgage company asks that you purchase a flood insurance policy, you’ll have to purchase a National Flood Insurance Program (NFIP) or private flood insurance policy.
What is considered flood damage?
What is and isn’t considered flood damage can be tricky to understand, especially in a catastrophic hurricane where compounded damage can easily blur the lines. A proposed bill, Florida HB 1049,would require home sellers to complete and provide a flood disclosure to a purchaser at or before the time the sales contract is executed. That bill defines flooding as:
- The overflow of inland or tidal waters.
- The unusual and rapid accumulation of runoff or surface waters from any established water source, such as a river, stream or drainage ditch.
- Sustained periods of standing water resulting from rainfall.
What does flood insurance cover?
Flood insurance through the NFIP covers homeowners, renters and businesses with the following coverage limits:
- Homeowners – $250,000 for buildings and $100,000 for contents
- Renters – $100,000 for contents (property owners are responsible for insuring the building)
- Businesses – $500,000 for buildings and $500,000 for contents.
What if my home is worth more than $250,000?
Coverage limits on insurance policies are meant to cover the cost of replacing the home, which doesn’t always reflect the home’s market value.
But with the rising costs of labor and building materials, the $250,000 cap on flood insurance feels like it’s shrinking more and more. The good news is that homeowners can purchase excess flood insurance from property insurance companies licensed in Florida.
Florida home insurance:Wondering when your homeowners insurance premium will drop? Here's what the state is doing
What is excess flood insurance?
Excess flood insurance serves as added protection against flood damage beyond an NFIP policy’s coverage limits. The extra coverage can not only insure a building on a property above the standard $250,000 coverage limit, but it can also come with extra perks, such as providing temporary living expenses and additional liability.
Is flood insurance only available to homeowners?
Nope, renters can purchase NFIP flood insurance policies that will cover their home’s contents for $100,000.
What is the National Flood Insurance Program (NFIP)?
The National Flood Insurance Program (NFIP) was created on Aug. 1, 1968, after the National Flood Insurance Act (NFIA) was established. It is managed by the Federal Emergency Management Agency (FEMA).
The program’s purpose is to allow property owners and renters in participating communities to purchase flood insurance in exchange for those communities adopting and enforcing regulations to reduce flood damage.
According to the NFIP, the organization has received more than 2.5 million claims and protects $1.28 trillion in assets across nearly 5 million policies.
How to check if your home is in a flood zone?
FEMA provides flood zone maps, which makes it simple to find out which flood zone your home sits in. Head over toFEMA’s Map Service Centerto get started.
Once you’re there, you can enter your home’s address inside the search bar underneath the “Looking for a Flood Map” subhead.
You’ll be taken to a new page after you enter your address. The new page will provide you with an interactive map and options to download the flood map corresponding to your home.
The more you zoom into the map, the more you’ll see it begin being populated with filters that will tell you about your home’s flood risk. The legend below the map indicates what each filter means.
