Who Needs Flood Insurance?

Flooding is the most common natural disaster in the United States. It accounts for approximately 43% of all natural disaster events that have occurred here in the past two decades. Flooding is also typically not covered in most homeowner's insurance policies.

In order to be protected for the financial losses associated with most floods, you must purchase separate flood insurance for your dwelling. This type of insurance is sold through the National Flood Insurance (NFIP) Program, which falls under the administration of the Federal Emergency Management Agency (FEMA). You cannot purchase flood insurance directly from NFIP however, but must buy it through an insurance agent. Certain insurance companies also offer private flood insurance as an alternative to the federally-sponsored program.

Who Needs Flood Insurance?

FEMA categorizes the flood risk of any particular geographical area as an A (high risk), a B (moderate risk) or a C (low risk). Flood maps have been created and are regularly updated to show flood risks for each area of the country. Here you'll find a map for NC's Triad area. Be advised, these maps can change as the topography and other aspects of an area affecting potential flood risks change. New land use and development throughout the community can change the way water flows and accumulates. Flood maps show different flood zones in a community, flood plain boundaries and base flood elevations.

It's Where You Live That's Important

No matter where your home is located, some risk of flooding exists. While those living in high risk areas are more vulnerable to experiencing flooding events, more than 20% of floods occur in areas of low risk. Flooding can be caused by more than rising rivers or rising seas in coastal areas. Rain storms are also responsible for a large amount of flood damage. Consider this – it's estimated that a mere one inch of water flooding your home can cause as much as $25,000 in damage. Flood insurance in low-risk areas is extremely affordable and well worth the amount of protection received. For this reason, even those at low or moderate risk of flooding should consider adding flood insurance to their insurance portfolios.

If your home is located within a high risk flood zone and you have a federally-backed mortgage, your mortgage company will require that you buy and maintain flood insurance coverage. Other mortgage lenders, even if not federally backed, may require the same.