What is flood insurance?
In 1968, Congress created the National Flood Insurance Program,
NFIP, in response to the rising cost of taxpayer funded disaster
relief for flood victims and the increasing amount of damage caused
Why do I need flood insurance?
Flood losses aren't covered by your homeowners' insurance policy.
Local flooding can happen in all parts of the country at almost
any time of the year. Flooding causes more damage in the United
States than any other weather related event, an average of $4.6
billion a year in the past 20 years.
How do I obtain a flood insurance policy?
You can purchase national flood insurance from private insurance
companies and agents. In fact, you may be able to purchase it
with a credit card. Currently, there are over 100 insurance companies
that sell national flood insurance coverage, in addition to some
60,000 independent insurance agents. If the seller of the property
has flood insurance coverage on the building, that policy can
be assigned to the buyer at the time of closing. If the mortgage
company requires flood insurance as a condition of the loan, the
lender may escrow flood insurance premiums, making it easy to
ensure that you will not get caught without flood insurance when
a flood threatens your home.
Who can purchase flood insurance?
Anyone in a community that participates in the National Flood
Insurance Program can purchase building and/or contents coverage,
with a few exceptions. Coastal barrier resources system areas,
otherwise protected areas, and buildings principally below ground
or entirely over water are not eligible for National Flood Insurance.
See the NFIP web page for
more detailed into.