Many homeowners and business owners wrongly assume that the property protections they may have through a homeowners insurance policy or commercial property policy protect against damages caused by flooding. Unless you have secured a flood insurance policy, you won’t be financially protected from a flood or flooding from a tropical storm, depression or hurricane that damages your home, business or personal property. Work with FLM Insurance, LLC to find out whether you need a flood insurance policy and how we can help you get one.
Who Needs Flood Insurance?
Property owners can consult FEMA’s flood map to determine whether flood insurance is necessary. Federal laws mandate property owners with homes or businesses located in high-risk flood zones to have flood insurance if they have a federally-backed mortgage. Additionally, if you’re a homeowner, your mortgage provider may require you to obtain flood insurance due to the proximity to water and the frequency of severe storms.
In Mississippi, flood maps can aid communities in enhancing infrastructure and planning new developments. Insurers may refer to your community’s flood map to evaluate flood risk and establish insurance premiums and requirements.
Flood risk is classified as follows:
- Special Flood Hazard Area (SFHA)—These areas face serious flood risks, with a 1% or higher chance of a flood event during any given year. If you own property here, you must purchase flood insurance if you have a loan against the property.
- Moderate risk flood zone—These areas are often located in areas surrounding SFHAs and have at least a 0.2% annual chance of a severe flood event.
- Minimal flood hazard—These areas are outside the SFHA at higher elevations and have less than a 0.2% annual chance of a severe flood.
While flood insurance is not required unless you live in an SFHA, one-third of insurance claims originate in moderate to low-risk flood areas.
What Does Flood Insurance Cover?
Flood insurance can help cover the risks associated with rising waters and heavy rainfall. It can supplement your existing homeowners insurance policies and give you peace of mind knowing you are financially protected.
Although policies vary, flood insurance may include the following coverages:
- Building coverage—This may provide repair or replacement payments if your building, its permanent fixtures or other vital structural elements (e.g., the plumbing and electrical infrastructure) are damaged or destroyed by a covered flooding event.
- Contents coverage—This may provide financial assistance if a covered flooding event damages or destroys the movable items inside of your home (e.g., furniture, clothing, electronics and portable applicable).
A flood insurance policy may include other coverages (e.g., debris removal). Consult with our agents for more information on terms, exclusions and limits.
How to Choose the Right Flood Insurance Policy for your Home or Business
Although you can purchase flood insurance at any time, policies may take 30 days or more to go into effect. This means it may be too late if you wait until a storm is forecasted to purchase coverage. Contact FLM Insurance, LLC to learn more about flood insurance and get appropriate coverage for your home or business.