What Insurance Do I Need If I Live In a High Risk Flood Zone in Connecticut?

Living in a high-risk flood zone area in Connecticut can be very bad for your house. Let’s make one thing clear, just because you have home insurance doesn’t mean that you are protected from the flood. Home insurance covers damage from light rainfall but not natural water disasters.

As you can guess, you will need flood insurance to protect your house. Having this insurance policy is an integral part of being a homeowner. Insurers are required to provide you with flood insurance based on FEMA (Flood Insurance Rate Map). You can either purchase a private policy or buy one through the National Flood Insurance Program (NFIP). This program is managed by FEMA, so you know you are in good hands.

On average, the monthly flood insurance premium for homeowners in Connecticut is $116. The yearly premium is $1,395 and this rate is quite different from the policies available in other states. According to a report by ValuePenguin, the state with the second highest flood insurance premium is Connecticut.

 

Flood Zones that Require Insurance

 

To understand the basics of flood insurance, you need to know three things first:

 

Standard Home Insurance Policy Doesn’t Provide Protection for Flood Damage

 

Flood damage is defined by natural disasters. If water rises in nearby lakes, streams or rivers, you won’t be protected under a normal policy.

 

Most People Purchase Flood Insurance from NFIP

 

Under the National Flood Insurance Program, you are provided with 2 polices:

• A policy that covers your home up to $250,000 (this includes only the property)
• A policy that provides coverage for your personal belongings up to $100,000

You can have both policies based on the area you live in. 

 

You Will Have to Buy a Policy In Order to Get a Loan

 

If you live in a high-risk area, which we will define later, then you have to purchase the flood insurance policy before getting the loan. If you are buying a house in a well-known community, find out if they participate in the program. This will help you get the policy faster.

 

What Flood Insurance Covers

 

The NFIP policy covers the cost to rebuild the house in the case it is damaged by a flood. The areas include:

• Your home’s foundation
• Plumbing and electrical systems
• HVAC equipment such as water heaters, air conditioning and furnace
• Kitchen appliances such as stove, refrigerator, dishwasher
• Permanently installed carpeting 
• Permanently installed wallboard, cabinets, bookcases and paneling
• Debris removal
• Window blinds
• Water heater
• Detached garages (covered 10% according to the home policy)

Items that come under personal property and will be covered include:

• Curtains
• Electronic equipment, clothing and furniture
• Window AC units
• Washer/dryers
• Portable dishwashers and microwaves
• Carpets that are not covered under the building’s policy
• Your freezer and the frozen food inside it
• Valuables up to $2,500, which include furs and arts

Note: When you are filing a claim for your personal possession, the coverage is based on their actual cash value and not their price.

 

What Isn’t Covered

 

Whatever is kept in a safe deposit box on bank is not covered:

• Cash
• Bearer bonds
• Stock certificates
• Precious metals

Other items include:

• Trees
• Plants
• Walkways
• Decks
• Wells
• Septic systems
• Patios
• Fences
• Swimming pools
• Hot tubs
• Mold damage caused by flood that appears after quite some time
• Boat houses
• Storm shelters
• Retaining walls
• Loss of income
• Temporary housing and the living expenses that come with it
• Cars
• Sewer backups

 

Coverage for Basement

 

NFIP provides limited coverage for the basement and other crawlspaces that are below ground level. Even if you have a walkout basement, the following things will not be covered:

• Paneling
• Window treatments
• Bookcases
• Floor coverings such as tile, carpeting and more
• Drywall (if it is too far below the ground, it will not be covered)
• Ceilings and walls that are not made from drywall
• Personal property like electronic equipment, clothing, furniture and kitchen supplies

According to FEMA, two things help you decide whether you need a flood insurance policy or not. 

 

Living on the Shoreline

From New Haven to Old Saybrook, FEMA considers this area at high risk of flooding. As mentioned earlier, since home insurance does not provide this type of coverage, insurers are obligated to present the option. People living on the shoreline have to pay a high premium because their houses are the ones that get damaged first and the most by the flood. 

In order to take out a mortgage, it becomes essential to have this insurance policy in place. On average, water damage costs about $27,150 in repairs. On a home insurance policy, you do not get this type of reimbursement. 

 

For Low-Risk Areas

Just because you are not living in a high-risk area as outlined by FEMA doesn’t mean that you don’t need to purchase flood insurance. The high pressure of the water might not destroy the exterior of the house but it can damage the foundation. 

Flash flooding and rive water from a storm can often cause unmentionable damage. Then there are seasonal changes that can bring about a flood, such as in:

• Late winter to early spring
• Early fall
• Late summer
• Early winter

In order to protect yourself from the flooding risk, you can buy a small policy that covers certain areas of your house. 

It’s important to understand that if you live in a high-risk area like Connecticut, which is prone to flooding then you NEED to purchase this policy. It might be the only thing standing between your home’s safety and a full blow disaster where you lose the roof over your head, figuratively speaking. 

If you are looking for a qualified insurance agent who holds years of experience in providing the perfect insurance policy based on a customer’s needs, then visit Pawson. The company provides all types of insurance policies for homes, personal properties, cars and businesses. To know more about their policies, contact them at 203-481-8898.