Living In a Flood Zone: Do I Need Flood Insurance?

Charlotte Miller

Updated on:

Are you wondering, “do I need flood insurance?” 

Flooding is one of the most common and globally widespread weather-related natural disasters. In the US, floods kill more people every year compared to lighting and tornadoes. It also destroys your property and private belongings. 

In this guide, we’ll talk about your flood zone and if you need to invest in a flood insurance plan. 

Are You In A Flood Zone? 

Flood zones can help you determine the cost of your flood insurance. It determines whether it’s necessary or mandatory for homeowners to have one. To know if you are in flood zones, check the FEMA flood zone map. 

Flood zones have labels that tell you your flood risk and insurance terms and rates. Here’s a quick rundown of the most common flood zone labels:

  • Zone A: highest flood risk
  • Zone B: moderate flood risk 
  • Zone C: minimal flood risk 
  • Zone D: undetermined risk 
  • Zone Z: high flood risk in coastal areas

You can find an expert to help you understand your flood risk levels. Professionals can also tell you what insurance you can get from your flood zone. 

Types of Flood Insurance

There are two main types of flood insurance: NFIP and private flood insurance. Both types have different coverage costs and options. Let’s take a look at which flood insurance fits you the best. 

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National Flood Insurance Program or NFIP

NFIP coverage includes both personal property and building property. Personal property coverage can cover up to $100,000 of items. This includes your depreciation values. 

Building property coverage can replace or repair your home for up to $250,000. It can take about 30 days for NFIP to go into full effect. 

Keep in mind that NFIP does not cover basements or any areas that are below ground level. Any items that aren’t damaged by the floodwater will not get covered by NFIP. Most features outside your house will also not get covered, such as fences. 

Private Flood Insurance 

Private flood insurance is not funded by the federal government. This type of flood insurance comes from insurance companies with very different policies. Private flood insurance has a shorter wait time, taking less than a week for it to fully take effect. 

Most insurance companies give higher levels of coverage compared to NFIP. However, this insurance has a higher pay for better and heftier premium coverage. Private flood insurance also doesn’t cover areas that have a high risk of flooding. 

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Do You Really Need A Flood Insurance Plan? 

Some areas may require you to start buying flood insurance. If it’s not required, it usually depends on your budget and tolerance for risk. Owning flood insurance can offer you peace of mind when you lose your home to flooding. 

Consider where your property lies and its elevation in case of flooding. If most of your property is safe, then it’s better to save your cash for something else. 

Your Insurance For Natural Disasters 

Save more cash by buying flood insurance if you live in a high-risk flood zone. Be sure to talk to professionals to help you pick which one suits your budget and plan. 

Do you want to learn more about flood insurance? Take a look at the rest of our guides for more insurance information.