Floods are the most common and costly natural disaster in the United States. However, according to the National Association of Insurance Commissioners, only about 15% of homeowners have the correct policies in place to cover their home and belongings for flood-related damage*. At South Carolina Federal Insurance Solutions, we are committed to helping you understand available coverage options and select a policy that fits your unique situation. We have compiled a list of frequently asked questions to help you navigate the world of flood insurance.
Does my homeowners insurance policy cover flood damage?
Many homeowners believe that they are covered for flood damage by their homeowners insurance policy. However, flood coverage is excluded by most homeowners policies.
How can I distinguish flood damage from other water damage that IS covered under my homeowners insurance policy?
Under most homeowners insurance policies, if water damage occurs suddenly or accidentally from a source inside your home, such as a busted pipe, it will likely be covered. The primary difference is that with a flood, the water comes from a natural source, such as storm surges, inland flooding caused by bodies of water overflowing, or flash floods.
How much damage can flood water cause?
According to FEMA, just one inch of water can cause $25,000 of damage to your home. Floods can cause power, water, and gas outages; pollute drinking water systems; damage homes and buildings; and cause severe environmental problems. Also, flooding can cause fatalities and serious injuries when people do not heed evacuation orders.
I do not live in a flood zone. Do I still need flood insurance?
Many homeowners believe that they only need flood insurance if their mortgage lender requires it. However, you do not need to live in a high-risk flood zone or near the coast to be at risk. Wherever it rains, it can flood, regardless of your proximity to a body of water. According to FEMA, 99% of counties in the United States have been impacted by flooding.
How can I obtain flood insurance?
The majority of flood coverage in the United States is issued by the National Flood Insurance Program (NFIP). This program is managed by FEMA and offers flood insurance to homeowners in participating communities. However, homeowners can also look to private flood insurance companies to secure coverage at more competitive rates. Private flood insurance may be a good option for those seeking more coverage options than the NFIP offerings, need higher limits of coverage, or are looking for savings.
Insurance Solutions is proud to offer flood coverage through Neptune Private Flood Insurance. Neptune allows you to tailor your policy to cover more of your assets and provides flexible offerings that go above and beyond the limitations of NFIP. To get started, visit their quick self-quoting option or reach out to your Insurance Solutions advisor to schedule a comprehensive review of your policies.
* https://content.naic.org/sites/default/files/cipr-jir-2023-1.pdf
