Most insurance companies in the United States do not offer flood insurance. However, if you have a home in a flood-prone area, then you may want to buy flood damage insurance.
Worried about flooding? Want to protect your home? You may need flood damage insurance. Today, we’re explaining everything you need to know about how to get flood damage insurance.
Get Flood Insurance Through the Government or a Private Company
You can get flood insurance through a private company (like any ordinary insurance company). Or, you can get flood insurance through the United States government.
Private Companies: Most major insurance companies do not offer flood insurance. However, you might find an insurer in your area that provides flood insurance.
Government: The United States government runs the National Flood Insurance Program through FEMA. The National Flood Insurance Program provides flood insurance to homeowners in flood-prone regions.
Why is the government involved in flood insurance? Well, private insurers consider flood-prone areas too risky to insure. A company might sell flood insurance to thousands of homes in a flood-prone region, for example. Then, a single flood causes billions of dollars of damage to all of these homes, creating a huge loss for the insurer. Most insurance companies consider flood insurance too risky and unprofitable.
Buying Flood Insurance Through the National Flood Insurance Program
For most homeowners across the United States, the National Flood Insurance Program is your best option for flood insurance.
You don’t purchase this insurance directly from the government. Instead, you buy it through insurers in your area. Or, call the NFIP Referral Call Center at (888) 379-9531 to speak with a representative in your area.
An agent will sell you flood insurance just like any normal policy.
When you sign up for NFIP flood insurance, your coverage is activated within 30 days of signing up. You cannot sign up for flood insurance as a hurricane is heading towards the coast – so don’t delay.
Pros:
- Available almost everywhere in the United States
- Reliable coverage from a trusted source
- Up to $250,000 of flood insurance coverage
- Limited to $250,000 claims, which may be insufficient for certain homes
- Does not cover additional living expenses (ALE) if displaced from a flood
Private Flood Insurance
Alternatively, some private companies sell private flood insurance. This insurance is separate from the NFIP. It’s not available in all states, and limits vary. Some companies exceed the $250,000 coverage offered by the NFIP, while other companies only offer $100,000 of coverage.
Read more about comparing the NFIP and Private Flood Insurance options here.
Compare flood insurance quotes in your area. If you’re struggling with a flood insurance claim, contact a public adjuster to navigate your complex situation.