Why Do I Need Flood Insurance?

Why Do I Need Flood Insurance?

Why Invest in Flood Insurance

Flooding is often unexpected and can quickly wreak havoc. According to FEMA, just one inch of water can cause up to $25,000 in damage. Most homeowners insurance doesn’t cover flood damage. Flood insurance must be purchased separately.  It’s one of the best ways residents and business owners can protect themselves against financial losses due to high water.

Flooding Risk in Maryland

The Maryland Emergency Management Agency reports Maryland is prone to flooding. The agency notes short bursts of heavy rain can impact small streams and creeks and lead to flash flooding. Prolonged steady rain can impact larger streams and rivers and cause widespread flooding. Hurricanes and tropical storms can lead to tidal flooding along Maryland’s bays and tributaries. Find out if your neighborhood is at risk for flooding by visiting  https://mema.maryland.gov/Pages/flood-Prone-Zones.aspx.

The Mid-Atlantic and Northeastern states get hit with high rainfall, but less frequently than the Gulf states do. As a result, the Mid-Atlantic area is less prepared to handle the impacts of flooding.

The Benefits of Flood Insurance

Flood insurance is available to all homeowners, business owners and renters. You don’t have to be in a high-risk flood zone to purchase it. The coverage can stop the need to dip into your savings or take on debt to make repairs to flood-damaged property. Having flood insurance helps victims recover faster when floodwaters recede.

What Flood Insurance Covers

Flood insurance is available primarily through the federally run National Flood Insurance Program (NFIP). Under the NFIP, residential property owners can buy coverage of up to $250,000 in structural damages and up to $100,000 for personal property. Businesses can buy up to $500,000 in coverage for damage to buildings and another $500,000 for damage to contents.

The NFIP provides flood insurance to people in areas highly prone to flooding. These are called SFHAs, or Special Flood Hazard Areas.  SFHAs are also known as the 100-year floodplain.

Some private insurers also offer flood insurance. The options typically offer more flexibility and broader coverage than the federal government does.

The Cost of Flood Insurance

How much you have to fork over for flood insurance varies by flood zone, the coverage you buy, and characteristics of your property. NFIP policies for single-family homes inside a floodplain cost an average of $1,100 per year. It will run you about $490 annually if you have a home outside the Special Flood Hazard Area. Flood insurance is mandatory for certain homes in the SFHA, also known as the 100-year floodplain.

Although flood insurance isn’t legally required for all properties, it’s a good idea to have it. Properties outside flood prone areas account for 20% of all NFIP claims and receive 33% of federal disaster assistance for flooding.  Flood insurance can be quite affordable for homes outside FEMA’s high-risk flood zones.

Let Us Repair the Damage

When it comes to water, flood or fire damage,  Flood Department is here to help. We provide water damage repair and clean-up services for homeowners and businesses. We cover Maryland, Pennsylvania, Virginia, West Virginia, and Washington, D.C. We are dedicated to helping reverse the damage done by water, mold, sewage, smoke and more. Contact us at 301-829-2600 or visit us online.