When do I need flood insurance cover?
Flood damage is a serious concern for many homeowners, and in some cases, can be unavoidable. Floods are known to be one of the most common natural disasters in the US and can happen anywhere, even when you don’t live in a high-risk area.
Insurance for high-risk flood zones
If you own a home in an area that is likely to flood and you have obtained a mortgage with a federally regulated or insured lender, your mortgage lender may require you to take out flood insurance.
You can find out if you live in a high-risk flood zone in the United States here.
If you live in one of the 23,000 participating NFIP communities, you are eligible to obtain national flood insurance. This type of insurance covers severe water damage like heavy rain, melting snow, and severe coastal storms.
However, insurance through the national program has a set limit per building and its contents. It can also mean that if you have to leave your flooded home due to unforeseen circumstances, it may not be covered.