• Michael Christensen

Flood Water Damage Insurance: Get Insurance Coverage to Repair Flood Damage to Your Home

Learn more about insurance for flood water damage including flood home insurance coverages and rates before you buy. A loan provided by a federal disaster assistance organization, when available, can help pay for some flood water damage losses. Homeowners flood insurance helps protect homeowners in case of a loss caused by flood damage.

Flood Water Damage Not Covered by Homeowners Insurance

Repair for flood water damage is not covered by the homeowner’s insurance policy. That’s a common misconception. To get coverage for flood water damage, homeowners must live in an area that participates in the National Flood Insurance Program. Flood insurance is also available as an addendum to the renter’s insurance policy if the home is located in an area that participates in the National Flood Insurance Program.

Mortgage Lenders Require Flood Insurance for the Home

Mortgage lenders require that customers buy homeowners flood insurance in areas that are at high risk for flood damage. Lenders are required by law to require that customers who live in flood zones buy flood insurance for their home. Lenders are required to do this to help reduce federal expenses related to uninsured homes that receive flood water damage.

Lenders Will Force Place Insurance if Flood Insurance Isn’t Purchased

Homeowners who do not buy flood insurance for their home may have a policy provided for them by their lender. The premium for the “force placed insurance policy” is included with loan payments, and interest is charged on the insurance. Force place flood insurance policies do not provide coverage for contents of the home. If you receive a force placed flood insurance policy, and you already have flood insurance, you must provide proof of insurance to your lender, usually in writing.

Flood Damage Insurance Required After Flood Water Damage Occurs

If a home is damaged by flood water, and the homeowner received federal disaster assistance, flood insurance must be purchased. If flood insurance is not purchased, and the home is damaged by a flood again, the homeowner may legally be denied federal disaster assistance.

Inexpensive Flood Insurance Rates Available to Homeowners

Flood insurance rates are very affordable. The average cost for a homeowner to buy flood damage insurance is around $300 annually for people who live in a high-risk flood area. The cost for flood insurance for people who live in an area that’s less at risk for flood damage is usually around $100 annually.

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