Flood Insurance

Flood insurance protects your property against the possibility of loss associated with flooding. This is important to consider because traditional property insurance does not cover flood damage. You need a separate policy for floods.


If you own residential or business property near water, then the risk of flooding is increased. Also, if you are in the market to purchase property at risk from flooding, then you need flood insurance if you are seeking an FHA or other government loan.


Should your property sustain flood damage, you will file a claim for compensation. An insurance agent will inspect your claim, and decide the proper amount of compensation. Flood damage can cause thousands of dollars worth of damage, so flood insurance is good to have.


A “building only” policy covers damage to real estate. There is also a “contents only” policy that only covers content on the property. These are designed for renters of properties that might be in flood prone areas. Some policies cover both the property and the belongings. Policies and premiums are determined by a property’s level of flood risk.

Since most property insurance does not cover flood damage, you should consider flood insurance. Otherwise, you are personally responsible for out-of-pocket costs that follow a flood. You will have to pay for all structural damage and property losses if you don’t have flood insurance.