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What You Need to Know About Flood Insurance

April 20, 2016

04.14.2016_01When it comes to keeping your family and home protected, insurance plans offer not only peace of mind, but financial support when the unexpected happens. Flood Insurance is one type that every homeowner should have. Even if you live in a low-risk zone, anything can happen with water. The Federal Emergency Management Agency, FEMA, offers the National Flood Program, providing insurance for homeowners faced with an area flood. New rates were recently announced, increasing the cost. If you have a policy already, be aware of this change. If you occupy your home, your rate will go up by 9%, if your home is non-owner occupied, the rates will rise 25%. But what exactly do you get with flood insurance?

With a flood insurance policy, land and buildings are covered in times of flooding due to overflowing water from coastal or inland waters, unusual flow or saturation of surface04.14.2016_02 waters, mud flows, or a land erosion collapse. In times of national disaster, there may be federal assistance available, but there are fewer guarantees from these programs. If funding is provided, it must be paid back. With your own insurance, you keep the funds received from a claim. You have more control with a claim on your own policy as well. If a flood is not deemed a national disaster by the President, your policy will still pay out your claim. Flood insurance policies are also continuous so long as you hold it. Through the national program, multiple claims will not result in a plan cancellation.

With a flood insurance policy, residential buildings are covered up to $250,000, and the contents within are covered up to $100,000. These amounts apply no matter what type of flood zone you live in. If you live in a high-risk zone, you will pay more for the policy, however. But don’t let a low-risk zone fool you. According to FEMA, more than 20% of National Flood Insurance Program claims come from areas that are outside known Special Hazard Areas. If you live in a moderate to low-risk area, the average cost is $200 annually. For high-risk areas, the average is $600. When you can get a guaranteed payout of up to $350,000 for your policy, the cost of this protection for your home is worth it.

If you don’t have flood insurance, I strongly recommend it. If you are ready to buy a home, keep the National Flood Insurance Program in mind when you meet with your insurance agent. When you are ready to buy or sell a home, me and my team are ready to help you through the entire process. Our goal is to make your experience both easy and pleasurable. Contact us today at (925) 634-7820, or by email at


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