Many areas of the U.S. have suffered from flooding this year and more flood damage may occur in the near future. However, most homeowner’s insurance policies do not provide coverage from floods. They won’t help pay for damages if streams overflow or if ground water from a heavy rain seeps into your basement.
For flood insurance, check out the National Flood Insurance Program (NFIP), at www.floodsmart.gov. The NFIP is administered by the federal government but NFIP policies are sold by private insurance companies. The agent who sold you a homeowner’s policy may also offer flood insurance through the NFIP.
The NFIP allows you to cover your house for up to $250,000, plus another $100,000 for the contents of your home. Premiums are standard, across the country.
For example, say you live in house with a basement, in an area with low to moderate risk of flooding. No flood claim has been filed by anyone living at your address. If you want $100,000 of flood coverage for your home and $40,000 for contents, your annual premium would be $304.
