Protection from the damage caused by floodwaters during annual flooding events is essential in many areas of the country, but it’s not covered in regular homeowner’s policies. Instead, the National Flood Insurance Program exists to provide affordable coverage in at-risk areas, and many insurers participate in the program to offer additional flood protection to customers who need it. If you’re not sure whether you need flood insurance added to a homeowner’s policy, the best thing to do is to contact an insurance professional and ask. Professionals who facilitate access to flood coverage have the expertise to interview you and make a recommendation, even when you don’t know whether you’re in a flood area.
What Is the NFIP?
Since seasonal flooding is a predictable disaster in some areas due to climate, it’s difficult for traditional insurers to offer the coverage at a cost-effective rate. As a result, water damage from floods is covered on its own, through a program underwritten by the federal government that provides standard protections to homeowners and others. Additional protection for high net worth individuals and businesses may also be available above and beyond the program if needed. Your basic homeowner’s policy should cover water damage from everyday issues like a burst pipe or backed-up drain, but flood damage requires its own protection, and it’s essential you find out whether you need it.