Every year people and property are devastated by floods.  Floods can strike anywhere.  The government established National Flood Insurance Program (NFIP) to help deal with the financial cost of flooding.  Find out how the flood insurance works.

Flooding in Cedar Rapids 2008 Even with modern management techniques, floods happen every year.  Look at the recent Katrina disaster or the flooding in the Midwest as examples.

Before 1968, the government tried to control flooding with dams and levees.  Victims of floods received little support from the government when a flood did occur.  However, in 1968 congress established the National Flood Insurance Program (NFIP).

The NFIP has 2 main goals.  The first is to make sure communities have sufficient flood management.  The second is to provide affordable flood insurance to homeowners, renters and business owners.

Flood insurance compensates home owners, renters and business owners in the event of a financial loss due to flooding.  Obviously those in a flood plain are at higher risk of loss.  However, even those in lower risk areas should still consider flood insurance.

Does My Home Owner's Policy Cover Flooding?

Flood Insurance is usually not covered by a home owner's policy.  However, the same agent that handles your home owner's insurance can usually handle your flood insurance.

Do I Really Need Flood Insurance?

Surprisingly the answer is yes, most homeowners and renters need flood insurance.

Do I Qualify for Flood Insurance?

You most likely qualify as long as your community participates in the NFIP.  You can find out if your community participates here.

Am I Required to Buy Flood Insurance?

You are not required by law to buy flood insurance.  However, if your mortgage lender is federally regulated and your property is in a high risk area, you are required to buy flood insurance.

I'm a Renter, Can I Get Flood Insurance?

Yes, as long as your community participates in NFIP.

Won't the Government (FEMA) Help Me?

No, the government only provides low interest loans for flood relief.  FEMA will only rescue you from the flood.  It's not their job to rebuild your home, especially if you knew it was in a flood plain.

How Do I Get Flood Insurance?

Usually the insurance agent that provides your home owner's policy can also handle flood insurance.  Flood insurance is sold by private insurance agents.  The program is backed by the government.

Do yourself a favor and double check your flood coverage.  I'll discuss more about flood insurance in future articles.  I'll provide a link to the new material as it becomes available.


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