Here's few things you need to know about flood insurance: When is flood insurance mandatory? You must purchase flood insurance if the following applies to you: You own a home or business in a high-risk area, sometimes known as a Special Flood Hazard Area. You have a mortgage from a federally-regulated or insured lender. Do I really need flood insurance? Just one inch of water can cost more than $20,000 in repairs and replacements, and flooding is the most common natural disaster in the U.S., according to FEMA. Even if your home is not in a flood plain, you can still find yourself underwater after a heavy storm. What flood insurance covers If you have physical damage to a building or your possessions directly caused by a flood, these are generally covered by flood insurance, according to FEMA. But, you have to be able to show the damage is a direct result of flooding. What flood insurance doesn't cover If your patio furniture is carried away in the floods, tough luck. According to the National Flood Insurance Project, property outside an insured home or building is not included. So, for example, if your patio rots or has mold damage, insurance won't cover the cost to rebuild the deck. Ask your insurance provider whether you may qualify for immediate coverage. How much is flood insurance? Some homeowners can purchase flood insurance for as low as $137 per year, but it depends on where you live.
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