Flood Insurance

Floods are the #1 natural disaster in the U.S. So what can you do to protect your home and personal belongings?

MYTH: Flood insurance is for high-risk areas.


Given that 1 in 4 claims don’t live in floodplains, you should assess your risks.

Drying Up Your Misconceptions

It only takes two inches of water to put you knee-deep in debt.

Add an extra layer of protection for your beloved home…

Did you know that homeowners insurance doesn’t cover flooding? Adding flood insurance means you’re covered in case of groundwater rises and causes flooding damage to your home—a situation in which is not usually covered by home insurance policies. Give yourself peace of mind by adding that extra essential protection to your home.

Benefits Of Flood Insurance


    •   Protects your home in case you live in an area with a high flood risk


    •  Get up to $250,000 in coverage


  •   Price is the same wherever you go unlike other insurance coverages


Understanding your flood risk and what flood insurance typically protects can help you choose coverage that meets your needs. Unlike other insurance coverages, the price is the same no matter where you decide to buy it. Now the reason for this is that it’s covered by a national program backed by the federal government: National Flood Insurance Program (NFIP). Ultimately, it doesn’t matter which insurance provider you get it from, it will still cost the same. (Good news for those who hate shopping around for insurance policies!)


When it comes to flood insurance, here are some facts you should know:


      •   Flood insurance can help protect you even if a federal disaster isn’t declared.


        •   Nearly 25 percent of all flood insurance claims come from areas not considered high risk1.


      •  The average flood loss is $38,0002.


      •   There is a waiting period before your flood insurance policy goes into effect, typically 30 days from the application and premium payment date2.


      •   If flood insurance is required for your mortgage loan, you may not have to wait 30 days. Usually, the loan closing date will be the effective date3.


      •   Less than 50 percent of all flooding incidents are awarded a Federal Disaster Assistance declaration4, and most disaster assistance is provided in the form of a loan that must be repaid with interest5.


1. https://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

2. https://www.floodsmart.gov/floodsmart/pages/residential_coverage/rc_overview.jsp

3. https://www.floodsmart.gov/floodsmart/pages/choose_your_policy/understanding_the_basics.jsp

4. http://www.washingtonpost.com/business/economy/homeowners-may-learn-limits-of-their-insurance/2012/10/29/2dac842a-21f9-11e2-ac85-e669876c6a24_story.html

5. https://www.floodsmart.gov/floodsmart/pages/flooding_flood_risks/map_changes_flood.jsp

If you live in a high risk area, some mortgage companies may require you to purchase a flood insurance policy. During situations that cause flooding such as heavy rain, severe coastal weather (e.g. hurricanes), and melting snow, it’s good to know you’re protected through flood insurance—anything can happen. In fact, one in five flood insurance claims occur in medium-risk or even low areas.


Flooding causes irreparable damage and can destroy a whole house and you could even lose all of your personal belongings. What if you can’t cover more than you’ve already lost? With flood insurance, you can receive coverage up to $250,0000.

Not necessarily true. If you live in a floodplain, your mortgage company may most likely require you to purchase flood insurance. And even if you don’t live in one, you can still purchase one. In fact, it’s cheaper to purchase flood insurance outside of a floodplain.


The price of flood insurance is based on standardized rates and depends on the home’s value and whether or not it’s in a floodplain. The average price for a flood insurance policy is about $600 annually. Even if you have an apartment or condo, you can still purchase flood insurance for your personal belongings.


If you’re thinking about purchasing a flood insurance policy, it’s best to think ahead as there is a 30-day waiting period before it takes effect.


Here is something else to consider. It’s a common misconception among the general population that floodplain maps don’t change. Just because you were never in a floodplain before doesn’t mean you might possibly be in one now. There are a couple of ways you can find out if you are at risk of flooding or you live in a floodplain:


  •   If you go to floodsmart.gov, you can input your address and see if you live in a floodplain.


  •   Ask your agent whether you live in a floodplain and what you can do about it.

Your insurance agent is an advocate for finding a rate and policy that meets your specific needs. Here are a few things to consider as you prepare for the discussion:


    •   Does flood insurance cover water backup damages? (Most flood and property insurance policies do not cover water backup damages. This type of damage occurs when a sump pump or sewers or drains overflow.)


    •   How much coverage can I receive on my flood insurance policy?


  •   What discounts are available? (If you live in a low-risk floodplain, you might be eligible to receive a lower premium plan versus those who live in a high-risk area.)


  •   What does my flood insurance cover? (For example, flood insurance may not cover any of your personal belongings in the basement in case of flooding damage.)


  •   Do I live in a floodplain? (Floodplains have a higher-risk of flooding.)

Protect your most important asset.

There’s no place like home… your home is likely your biggest investment. We understand that here at LMS, so let us help you find the right homeowners insurance policy that will provide you the kind of protection that assures you peace of mind.