In MD, DC, VA and some surrounding areas.
Did you know that damages caused by floods are specifically
excluded from all Homeowners policies? To be covered
for these damages, you need to have a separate flood
Flood insurance is particularly indicated for people
who live in flood-prone areas. It is important to understand,
however, that while homeowners insurance covers your
home and its contents in the same condition it was before
a loss, flood insurance only gets you back on your feet.
What is a flood?
"Flood" is defined as a general and temporary
condition of partial or complete inundation of normally
dry land areas from:
- overflow of inland or tidal waters,
- the unusual and rapid accumulation or runoff of
surface waters from any source, or
- mudslides caused by flooding
Do I need flood insurance?
Don't let that you don't own beachfront property lull
you into a false sense of security--beachfront structures
account for only 3% of all flood losses. Homeowners
who live in flood-prone areas, though, have a 26% chance
of having a flood loss over the course of a 30-year
mortgage! Mortgage lenders often require flood insurance
for loans on homes determined to be in flood-prone areas.
Your property may be at risk even if you don’t
live in an area prone to floods. Each year, about 35%
of all flood claims paid are for property located outside
high-risk areas. The good news is that there is a Preferred
Risk program that offers substantial premium discounts
for homes located in low hazard areas.
If you think your home is at risk, contact your agent
to determine your flood zone. Or you can check out special
flood insurance maps published by FEMA (the Federal
Emergency Management Agency). These maps (which indicate
a community's flood hazard areas and the associated
degree of risk) are usually kept on file at your local
town hall or county building and are available for your
What about the waiting period?
Don't wait until the water's rising to decide that
you need Flood Insurance! Insurance carriers require
a 30-day waiting period for new applications and endorsements
to increase coverage. The exception is for insurance
purchased as a condition for a mortgage loan. In that
case, the flood insurance is effective on the date of
Flood insurance is not as broad as homeowners insurance;
losses are settled on an actual cash value basis, not
on replacement value. Flood insurance provides limited
coverage on the portion of the building below the lowest
floor, and no coverage at all to personal property in
This description of coverage is
not an insurance contract. Your policy is the contract
that specifies and fully describes your coverage. Conditions
and exclusions will apply. Not all coverage described
is available in all states.