You don’t have to live near a body of water to be at risk for flooding — it can happen anywhere it rains. Even historically dry areas have been known to flood without warning. So it may not be a matter of whether you need flood insurance, but how much and what kind.
Ask your local Pace Insurance and Financial Services agent to run a “flood zone determination” on your property. The federal government’s National Flood Insurance Program (NFIP) has established two types of zones:
- High risk: Homes in these areas are more likely to be damaged by flood. The government requires homeowners to have flood coverage when they have loans from federally regulated or insured lenders.
- Low-to-moderate risk: Flood insurance isn’t required in these areas, but that doesn’t mean it isn’t desirable. Low-to-moderate risk zones account for 25% of all flood insurance claims, and receive one-third of federal disaster assistance for flooding.
Flood insurance covers direct physical loss to your building and its contents caused by flooding
Building property coverage includes:
- Building and foundation
- Electrical and plumbing systems
- Central air conditioning equipment, furnaces, and water heaters
- Refrigerators, stoves and built-in appliances such as dishwashers
- Permanently installed carpeting over unfinished flooring
- Permanently installed paneling, wallboard, bookcases and cabinets
- Window blinds
- Detached garages, up to 10% of building property coverage
Contents coverage includes:
- Personal belongings, such as clothing, furniture and electronic equipment
- Curtains
- Portable air conditioners
- Portable microwave ovens and portable dishwashers
- Carpets not permanently installed over unfinished flooring
- Washers and dryers
- Freezers and food contents
- Valuable items such as original artwork and furs, up to $2,500
- Replacement cost coverage is not available for personal property
Other coverages include:
- Debris removal at federal minimum wage, not subject to deductible
- Loss avoidance measures, $1,000 limit, no deductible
- Increased cost of compliance — flood-proofing, relocation, elevation and demolition, subject to limitations and qualifying criteria
