Insurance Read Time: 2 min

Protecting Your Home Against Flood Loss

In 2019, the average flood claim payout from the National Flood Insurance Program was $52,000.1

The financial loss that comes with flooding can be devastating. Yet, many Americans are not protected against flood damages, primarily because flooding is not covered under a standard homeowners policy.2

Low vs. High Risk

Even if you are in a moderate-to-low-risk area—homes not residing within mapped high-risk flood plains—you could suffer flooding at some point. In fact, moderate-to-low-risk areas account for nearly 25% of all National Flood Insurance Program insurance claims and one-third of federal disaster assistance for flooding.1

To protect yourself from the financial risks of flooding, you can consider purchasing insurance through the National Flood Insurance Program, which you can obtain through a local insurance agent. However, to be eligible, you will need to live in a community that participates in the program.3

Coverage Choices

If you live in a moderate-to-low-risk area, you may qualify for coverage at a preferred rate, with building and contents coverage for one low price.

If you live in a high-risk area, the National Flood Insurance Program offers separate coverage for buildings and contents.

The cost of flood insurance depends on a number of factors, including the age of your home, the number of floors and the location of contents, your flood risk, and the deductible and level of coverage you choose, among other things.

1. FEMA.gov, 2022. Most recent figure available.

2. Several factors will affect the cost of flood insurance, including the age of your home, number of floors, and the location of contents. You should consider the amount of your deductible and level of coverage before purchasing a flood insurance policy.

3. FEMA.gov, 2022

Share |

Have A Question About This Topic?

Thank you! Oops!
 

Related Content

Choices for Your 401(k) at a Former Employer

Choices for Your 401(k) at a Former Employer

Individuals have three basic choices with the 401(k) account they accrued at a previous employer.

Quickstart Guide to Estate Planning Terms

Quickstart Guide to Estate Planning Terms

In the hustle and bustle of life, it’s easy to postpone long-term planning, especially for uncomfortable topics. Then there’s the barrier of language. It’s hard to make an estate plan without knowing the terminology of estate planning or what questions to ask.

Tax-Advantaged Health Care Planning for Retirement

Tax-Advantaged Health Care Planning for Retirement

Heading into retirement with confidence is easier if your planning includes steps to minimize taxes, especially as it relates to health care planning.