Flood insurance 101

Floods are the nation’s most common and costly natural disaster, producing millions of dollars of destruction every year, according to the National Flood Insurance Program.

Floor insurance - Kentucky Farm Bureau
Homeowners and renters policies written through most insurance providers across the U.S. (including Kentucky Farm Bureau Insurance) do not protect against flood damage. A majority of flood insurance nationwide is written through the NFIP, which is administered by the Federal Emergency Management Agency (FEMA).

If you don’t live near a body of water, you may think you’re in the safe zone when it comes to floods. That’s not necessarily the case, as floods can happen anywhere, even areas at low or moderate risk. Floods are the nation’s most common and costly natural disaster, producing millions of dollars of destruction every year, according to the National Flood Insurance Program (NFIP). In fact, just one inch of water in a home can cause more than $25,000 in damage!

Homeowners and renters policies written through most insurance providers across the U.S. (including Kentucky Farm Bureau Insurance) do not protect against flood damage. A majority of flood insurance nationwide is written through the NFIP, which is administered by the Federal Emergency Management Agency (FEMA). Congress created the NFIP in 1968 to reduce future flood damage through floodplain management, and to provide people with flood insurance through individual agents and insurance companies.

 

Do I need flood insurance?

If you live in a "high risk" area, you may be required to have flood insurance, but floods can happen anywhere. In fact, more than 20 percent of flood claims come from properties outside the high risk flood zone, according to the NFIP. Flood insurance is a great extra layer of protection no matter where you live. 

FEMA works with communities across the country to identify flood hazards and create flood maps, which show a community’s risk of flooding. Not sure which zone your home is in? The flood maps for your community should be available for review at your local community map repository site, such as your county courthouse, city hall, or local planning, zoning or engineering office. To see the flood zone for a specific address, visit the Federal Emergency Management Agency (FEMA) Map Service Center.

 

Coverage options

According to the NFIP, “Physical damage to your building or personal property ‘directly’ caused by a flood is covered by your flood insurance policy. For example, damages caused by a sewer backup are covered if the backup is a direct result of flooding. If the backup is caused by some other problem, the damages are not covered.”

The NFIP offers two types of flood insurance coverage, building property and personal property. A building property policy would help protect hings like the insured building and its foundation, electrical and plumbing system, appliances, permanently installed flooring, window blinds, and more. A personal property policy would help to protect items such as curtains, clothing, electronics, and certain valuable items, such as original artwork.

Click here for a PDF prepared by the National Flood Insurance Program which may help you further understand flood insurance. This document provides a more in-depth look at deductibles, what is and is not covered by flood insurance, and how items are valued at time of loss.

>>  Your Kentucky Farm Bureau Insurance agent can offer NFIP flood insurance through Southern Farm Bureau Casualty Insurance CompanyTM. Click here to begin the easy quote process, or you can contact your local agent today to learn more about how we can help protect you with an affordable flood insurance plan.