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5 Things Florida Homeowners Need to Know about Flood Insurance

by BROOKE GOLD HASSON | May 21, 2015

FloodInsuranceFactsFrom hurricanes to torrential afternoon rainstorms, the Sunshine State is not so sunny when it comes to flooding. Whether you are located in a high-risk zone or a low-risk zone, having flood insurance will ensure that your home is covered if a disaster strikes.

What are the top things Florida homeowners need to know about flood insurance? Take a look…

What does flood insurance cover?

A flood policy is intended to cover physical damage to your building or personal property “directly” caused by a flood. Flood insurance covers damage caused by hurricanes, rivers and tidal waters as long as the floodwater either covers at least two acres of your property or two adjacent properties, one of which is yours.

To learn more, view/download the
Summary of Coverage brochure created by The Federal Emergency Management Agency (FEMA).

How are flood insurance rates calculated?

Flood insurance rates are determined by several factors, including:
  • The amount and type of coverage
  • Location and flood zone
  • Design and age of your home
  • Elevation (for homes in high-risk areas built after the first Flood Insurance Rate Maps were drawn)

Is flood insurance covered under my homeowner's insurance policy?

Unfortunately, losses due to flooding are not typically covered under most homeowner’s insurance policies. We recommend adding a Florida Flood Insurance policy to ensure complete protection of your home in case of a hurricane strike.

In some flood zones, flood insurance is affordable at about $1.40 per day (average is $503 per year) and the U.S. government provides a 100% guarantee.

Call us today to discuss your flood insurance needs: 1-866-972-1547

How long does it take for a flood insurance policy to go into effect?

Flood insurance typically requires a 30-day waiting period on new policies. Here are the exceptions:
  • If flood insurance is being purchased in connection with the creation, increasing, extending or renewing of your mortgage loan.
  • If your home has been recently designated in the SFHA and flood insurance is being purchased within the 13-month period following a map revision.
  • If flood insurance is required as a result of a lender determining that your mortgage loan that does not have flood insurance coverage should be protected by flood insurance.
  • If an additional amount of insurance is selected as an option on the renewal bill.
  • If your home is affected by flooding on burned Federal land that is a result of, or is exacerbated by, post-wildfire conditions when the policy is purchased within 60 days of the fire containment date.

Is my home located in a flood risk zone?

Flood risk zones are identified by the National Flood Insurance Program (NFIP), and are divided into the following three categories: 

High Risk Zone
There is at least a 25% chance of flooding during a 30-year mortgage. All homeowners in high risk zones with mortgages from federally regulated or insured lenders are required to purchase flood insurance.
Zones: A, V

Moderate to Low Risk Zone
The risk of flooding is reduced but not completely removed. Even if you live in a moderate-to-low risk zone, it’s recommended that you purchase flood insurance. About 25 percent of all flood insurance claims come from areas with low-to-moderate flood risk. On average, only two inches of water in your home can cause $7,800 or more in damage. Poor drainage systems, rapid accumulation of rainfall, and broken water mains can all result in flooding.
Zones: B, C or X 

Undetermined Risk Zone
No flood-hazard analysis has been conducted, but a flood risk still exists. Flood insurance rates reflect the uncertainty of the flood risk.

Zone: D

You may qualify for the Preferred Risk Policy, (a lower-cost flood insurance policy) that provides contents coverage beginning at $39 per year and building plus contents coverage beginning at $119 a year.

To find out what flood zone your home is located in, visit www.floodsmart.gov.