For days, torrential rain fell across a region that doesn’t usually worry too much about hurricanes or the damage they can cause. A false sense of security comes with being tucked away far from the coast, but Helene’s path of destruction made one thing clear: Flooding can occur anywhere it rains, making it a very real danger for all communities.
Storms like Helene are a stark reminder of how vulnerable a community can be to flooding, and they highlight the alarming fact that most homeowners do not purchase flood insurance.
Helene is blamed for an estimated $30 billion in uninsured flood losses across the Southeast stretching from Florida to Tennessee. In the hardest hit areas of Western North Carolina, less than 1% of homeowners with flood damage had flood insurance. Those without flood insurance faced the crippling financial reality of trying to repair or rebuild without any help.
A standard homeowners insurance policy does not cover flood damage.
A separate flood insurance policy must be purchased. This is optional coverage for most homeowners. Unless a home is in an area designated as a high-risk flood zone, based on maps drawn by the Federal Emergency Management Agency (FEMA), a flood insurance policy is not usually required by mortgage companies or lenders when a home is purchased.
Yet, FEMA reports four out of ten flood claims occur in low flood risk areas, proving that low risk does not mean an area will never flood. Also, FEMA warns flood maps are often outdated and are not designed for extreme rainfall events, as storms grow stronger fueled by rising sea temperatures. FEMA also warns current maps don’t predict future flooding conditions or reflect the impact of urbanization on an area’s future flood risk.
Even if your home is in a low-risk area, you should consider flood insurance.
Your Farm Bureau Insurance agent can assist with reviewing your flood risk and provide a no-obligation flood insurance quote through the National Flood Insurance Program (NFIP). The federally backed flood insurance program offers some of the lowest flood insurance premiums in low-risk flood zones.
A NFIP residential policy provides up to $250,000 of coverage for the structure and up to $100,000 of contents coverage. If higher coverage amounts are needed, an excess flood policy can also be purchased. Keep in mind that there is a 30-day waiting period before a NFIP flood policy can take effect.
There are also private flood insurance options outside the NFIP, but there are pros and cons to consider before purchasing a private flood policy. Private flood carriers may have a shorter waiting period than the 30-day wait to get into the NFIP. Private flood insurance often offers higher coverage limits and broader protection for personal belongings. However, those who already have a NFIP policy take the chance of losing “grandfathered” discounted rates if they leave the NFIP and later decide to come back. Another difference to consider, a NFIP policy can’t be cancelled as long as you pay your premiums, and NFIP policies are backed by the federal government. Lenders can accept private flood insurance, but they are not required to do so. If your lender requires a flood insurance policy, you’ll want to confirm if they will approve a flood policy outside of the NFIP before deciding what works best for you.
Get a No-Obligation Quote for Flood Insurance
Just one inch of water that floods a home can cost tens of thousands of dollars to clean up and repair. Consider how a flood insurance policy can help you protect your most valuable asset against the real and rising risk of flooding. Ask your Farm Bureau Insurance agent for a no-obligation flood insurance quote. Find an agent near you or reach a customer service representative at 1-800-799-7500.