The Friedman Blog

Posted on 03/14/2013, by Jeremy Edsall

Flooding: A Major Risk You Need To Face

Floods are the most common natural disaster in the United States. Anywhere it rains, it can flood. A flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow. Many conditions can result in a flood: hurricanes , overtopped levees, outdated or clogged drainage systems and rapid accumulation of rainfall.

Just because you haven't experienced a flood in the past, doesn't mean you won't in the future. Flood risk isn't just based on history, it's also based on a number of factors: rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development.

Flood-hazard maps have been created to show different degrees of risk for your community, which help determine the cost of flood insurance. The lower the degree of risk, the lower the flood insurance premium.


 Floods can happen anywhere, at any time. Residents who live in and outside of a high-risk area should know their risk, and consider protection. 
 Even if you live outside the high-risk zone, and are not required by law to purchase flood insurance, you are still at risk for flooding and should consider flood insurance. Flooding is not typically covered by homeowners insurance.
 It is important to know that if you have a mortgage from a federally regulated or insured lender on a home located in a high-risk area, federal law requires you to purchase flood insurance. Also, if you’ve received a federal grant or loan for previous flood losses, you must have a flood policy to qualify for future aid.


 As long as your community participates in the National Flood Insurance Program (NFIP), you are eligible to purchase flood insurance. Flood insurance is sold through private insurance companies and agents, and it is backed by the federal government. Unlike most standard homeowner’s policies, flood insurance covers losses to your property caused by flooding.
 When you purchase a flood insurance policy, there’s typically a 30-day waiting period for coverage to become effective.  Don’t wait until a storm threatens your property.  It could be too late!  The exception to the 30-day wait rule is that if insurance is a requirement of a loan upon closing, the 30-day wait will be waived.
 Flood insurance covers damage up to $250,000 for your building and up to $100,000 if you purchase contents coverage. Contents coverage is not automatically included in a standard flood policy. For businesses, flood insurance covers damage up to $500,000 for your building and up to $500,000 if you purchase contents coverage. Policies are available in three forms: Dwelling (homes and individual condominium units), General Property (other residential buildings (apartments, etc.) and businesses) and the Residential Condominium Building Association Policy Form (residential condominium buildings). Renters are also eligible to purchase a flood insurance policy.
 For properties located in moderate-to-low risk flood zones, a low-cost Preferred Risk Policy can start as low as $129 a year for both building and contents coverage.


 The Flood Insurance Claims Handbook is available to help you through the process of filing a claim and appealing the decision on your claim, if necessary. You can find this document at
 Visit or call 1-800-427-2419 to learn how to prepare for floods, how to purchase a flood insurance policy and what the benefits are of protecting your home or property investment against flooding.
 Contact Friedman Associates agent Tina DeMaria, and she will help you decide what kind of flood protection is best for you.


Flood Risk Scenarios

What Is Your Flood Risk?

The Cost Of Flooding


Source: FEMA / FloodSmart,gov

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