Flood Insurance FAQs

The Flood Authority Team answers some of your most frequently asked questions

Who Needs to Purchase Flood Insurance?

If you live in a high-risk flood zone (these are any zones that include A and V) and have a mortgage from a federally regulated or insured lender you are likely required to buy flood insurance. Keep in mind that even if you aren't in a high-risk area, it doesn't mean you aren't at risk for a flood. About 1/3 of all flood damage occurs to properties in low to moderate-risk zones and homeowners’ insurance typically does not cover flood damage so stay protected with a flood insurance policy. Where it rains, it can flood.

How are Flood Insurance Premiums Calculated?

There are many factors that go into how much your flood insurance premium will be such as your flood risk, type of policy you are purchasing, coverage amount and deductible. 1st Direct helps you navigate all these factors to find the best policy for the best price.

Do Condo Owners or Renters Need Flood Insurance?

Yes. While the building owner may have flood insurance to cover any building damage caused by flooding, it will not cover your personal belongings. Flood insurance has separate building and contents policies so if you rent or own a condo you can protect your belongings with a contents flood insurance policy.

What's the Difference Between Water & Flood Damage?

Homeowners insurance covers certain types of water damage such as burst pipes, a broken dishwasher, or rain coming through a damaged roof or window. It typically does not cover flood damage which is where flood insurance steps in. Flood damage is surface water coming into your home such as water from a rainstorm flooding the ground and entering your home, tidal surge, river or lake overflow and snow/ice melt.

How Does Flood Insurance Work?

Flood insurance is very similar to other insurance. A policy with the coverage limits and deductibles that fits your needs is purchased through your agent. If you have flood damage you will file a claim with your agent and an adjuster will come to your home, document the damage, and write an estimate. If your claim is accepted, you will receive your insurance payout minus your deductible. Each year your policy will need to be renewed and paid to stay active. Keep in mind that most policies have a waiting period so don't wait until a storm is on the way to purchase your policy.

Don't see the question you're looking for?

FEMA's Flood Insurance Advocate Explains...
What is Flood Risk?
When is Flood Insurance Required?