Here’s how “flood” is defined by the National Flood Insurance Program: “A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is the policyholder’s property) from:

• Overflow of inland or tidal waters; or
• Unusual and rapid accumulation or runoff of surface waters from any source; or
• Mudflow; or
• Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.”

 

What is a flood?

So, in plain English, a flood is an excess of water (or mud) on land that’s normally dry. Floods often happen when bodies of water overflow or tides rise due to heavy rainfall or thawing snow. But you don’t have to live near water to be at risk of flooding. A flash flood, which can strike anywhere without warning, occurs when a large volume of rain falls within a short time.

 

The basics

Flood insurance is available to everyone in your state (everyone is in a flood zone). Some parts of your state are in a high hazard flood zone and others in a moderate to minimal flood zone.

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Zone Risk

 

A High hazard, 1% annual chance of flooding
V High hazard, 1% annual chance of flooding
B Moderate to minimal, less than 1% annual chance of flooding
C Moderate to minimal, less than 1% annual chance of flooding
X Moderate to minimal, less than 1% annual chance of flooding

30% of all flooding occurs in moderate to minimal flood zones.

 

Preferred v. standard flood

Preferred rates (lower cost) are available for flood zones B, C & X. Standard rates apply in flood zones A & V.

 

Primary Flood Coverage v. Excess Flood Coverage

 

Primary flood insurance offers a maximum coverage amount of:
$250,000 Building coverage
$100,000 Contents coverage
Additional coverage is available as excess flood coverage. This excess coverage is written as a second policy.   

 

Elevation Certificates

An elevation certificate is only needed if the structure was built after the original FIRM (Flood Insurance Rate Map) date. This is referred to as “post-firm”. If the structure was constructed “pre-firm” and elevation certificate is not required and rates are subsidized by the National Flood Program.    

 

Limited coverage

Flood insurance is limited. There is no coverage for personal property kept in a basement through the National Flood Insurance Programand no coverage for finished structure of the basement.

 

Waiting period

In most cases, there is a 30 day waiting period when purchasing flood insurance. The 30 day waiting period can be waived when a lender requires flood insurance on a new purchase.

 

Payment

The National Flood Insurance Program and most private flood insurance companies requirement payment in full for the year to start the policy and at each renewal.

 

Canceling my policy

What if I decide I don’t want flood insurance, how can I cancel my policy? Since many flood insurance policies are required by a lender for the purchase of a property, canceling a flood policy may not be easy. There are a limited number of reasons you can cancel a flood insurance policy. Just because you don’t want the coverage may not be reason enough. A flood insurance cancellation Most policies are either canceled