Why Flood Insurance Is More Important Than You Think

Every homeowner should consider purchasing flood insurance regardless of the time of year. Usually flood insurance is considered after the snow melts and there is an increase of water levels however, waiting for the last minute or thinking it’s best to wait until after a snow storm can be a costly mistake. Most winters, the northeast receives varying levels of snowfall. Some winters, the snowfall is much more than expected. When the snow melts, there is always a potential for flooding when the snow melts. With the addition of spring rainfall could lead to a high risk of flooding.

Many homeowners in the northeast mistakenly believe they already have flood insurance and are prepared for this eventuality. Unfortunately, this often turns out not to be the case. If your home is already in a high risk flood zone, your mortgage company may have compelled you to purchase flood insurance at the time you took out the loan. Otherwise, since flood insurance does not come standard with homeowner policies, you would have had to purchase the coverage separately.

During any given spring, several areas that were not already considered high flood risks are hit unexpectedly by heavy storms and rising water levels. In low-lying areas that already have historically high risks of floods the danger is far greater.

Flood Insurance Basics: Flood insurance is underwritten by the Federal Emergency Management Association (FEMA) through its National Flood Insurance Program (NFIP) and can be purchased through participating insurance agents. There are two main parts to a flood insurance policy:

• Building Property: Provides coverage for your dwelling of up to $250,000.

• Contents/Personal Property: Provides coverage of up to $100,000 for your personal belongings. This portion of the policy must be purchased separately.

According to FEMA, a flood is defined as the partial or complete inundation (of water) covering two or more acres of unusually dry land or two or more properties, resulting from the overflow of inland or tidal waters or the unusually rapid accumulation or runoff of surface waters; as can happen with rapid snow melt or heavy spring rains. The collapse of earth beneath your dwelling resulting from the aforementioned occurrences may also be covered by flood insurance.

Do I Really Need Flood Insurance? The short answer is ‘that depends’. To find out if your area is at a high risk of flooding, it is best to speak with a participating insurance agent who can conduct a free flood zone determination. One word of warning, however; if you think you may need flood insurance in the near future, take action sooner rather than later. There is a 30-day waiting period before coverage takes effect, so you need to have your policy in place well ahead of any major storms.