By now, you probably know that only flood insurance covers flood damage, but you probably don't know all of the details. Here are some basic concepts you need to know:
Flood insurance can only be purchased through an insurance agent; you cannot buy it directly from the federal government.
As with any other type of insurance, it's important to know what your policy does and doesn't cover. For example, damage caused by a sewer backup is only covered by flood insurance if it's a direct result of flooding. The damage is not covered if the backup is caused by some other problem. For a complete summary of coverage, go to What's Covered.
Deductibles apply separately to building and contents with different amounts to choose from. Like other insurance plans, a higher deductible will lower the premium you pay, but will also reduce your claim payment. Your mortgage lender may also set a maximum amount for your deductible.
Homes and businesses with mortgages from federally regulated or insured lenders in high-risk flood areas are required to have flood insurance. While flood insurance is not federally required if you live in a moderate-to-low risk flood area, it is still available and strongly recommended.
There is a 30-day waiting period from date of purchase before a new flood policy goes into effect. Here are the only exceptions:
Payment must be made for the full year's premium. The National Flood Insurance Program accepts checks, money orders and credit card payments (American Express, Diners Club, Discover Card, Master Card or Visa). Coverage will not be effective until full payment is received.
We found multiple results for . Please select a zip code: