Even if your mortgage lender does not compel you to get flood insurance, you may still be at danger.
Floods have caused billions of dollars in damage in the last year alone, thanks to atmospheric rivers in California, Hurricane Ian in Florida, flash floods in Kentucky, and monsoons in Las Vegas.
You may believe that floods will never impact your house. According to the Federal Emergency Management Agency, floods cause 90% of natural catastrophes in the United States. In addition, if your home floods, your homeowners insurance is unlikely to help.
Is Flood Insurance Required?
According to Michael DeLong, research and advocacy associate at Consumer Federation of America, many individuals believe their homes insurance covers flood damage.
Flooding is not the same as water damage from a burst pipe, which is often covered by your homes insurance. Flooding is defined in the insurance market as excess water from causes such as overflowing rivers, raging tides, or rains that cannot drain quickly enough. Almost every homes policy excludes this sort of damage, so you'll need supplemental flood insurance if you want coverage.
Many individuals acquire flood insurance because they have no choice. FEMA identifies some locations as "special flood hazard areas," which have a 1% probability of flooding in any given year. Your lender will need flood insurance if you live in an SFHA and have a federally backed mortgage.
Most households outside of FEMA's high-risk zones do not get flood insurance, which may be a costly error. According to FEMA, around 25% of flood insurance claims are from low- or moderate-risk locations.
According to Jeremy Edwards, FEMA's press secretary, a map border should not influence whether you get flood insurance. "Wherever it can rain, it can flood."
And don't expect government disaster help if you don't obtain flood insurance. The maximum FEMA award for flood victims to repair their houses is $41,000, but most payments are far smaller. In comparison, government flood insurance covers up to $250,000 for your home's structure.
How To Evaluate Your Flood Risk
While FEMA's maps are a wonderful place to start, they aren't the only way to determine your home's flood risk. RiskFactor.com calculates your home's risk of flooding today and over the next 30 years. The website is the work of the charity First Street Foundation, which models the impacts of climate change using scientific evidence.
Unlike FEMA's maps, which have traditionally concentrated on coastline and river flooding, danger Factor maps include the danger of flooding from heavy rain. Scientists anticipate that because a warmer atmosphere can contain more moisture and create more rain, this sort of flooding will become more widespread as a result of climate change.
Risk Factor will also demonstrate how much flood damage may cost in different circumstances. This information can assist you in making an informed choice about whether or not to get flood insurance.
"Are you able to pay out of pocket if that rare event happens?" asks Matthew Eby, founder and CEO of First Street Foundation. "If not, you should definitely consider getting insurance."
Eby emphasises that "a model is a model," and not a clear forecast of what will happen. If Risk Factor indicates that your home is at risk of flooding, Eby suggests conducting more research by meeting with your community's flood plain manager. You may obtain contact information for your state or local government by contacting them.
If you're thinking about buying a new home, DeLong recommends asking the seller if the house or neighbourhood has ever flooded. Texas and Louisiana, for example, compel dealers to divulge this information.
How To Purchase Flood Insurance
The National Flood Insurance Programme is where most individuals get their flood insurance. FEMA administers these plans, which are marketed by insurers such as Allstate and Farmers. The NFIP website has a complete list of suppliers.
Depending on where you reside, you may also be able to shop around for better coverage or lower rates with private flood insurance. A local insurance professional can assist you in locating the finest flood insurance for you.
Consider these recommendations if you can't afford flood insurance or if you need other strategies to lower your risk.
Eby suggests raising expensive items like as heating and air conditioning systems, which is often less expensive than elevating the entire property.
A waterproofing material applied to the basement walls may help keep floodwaters away. Any water that does get in should be removed using a sump pump.
These foundation holes can help to minimise structural damage by allowing water to flow freely into and out of your home's lowest level.
If the flood danger originates outside your property, there is only so much you can do to secure your house. As a result, Eby advises homeowners to collaborate with neighbours and local governments to determine if investments in seawalls, levees, or better drainage systems may minimise flood risk on a larger scale. After all, as Eby points out, "the property is only as valuable as the community it's a part of."