The Importance of Flood Insurance and FEMA’s Role in Providing Coverage

Floods cause significant property damage and financial losses for many Americans every year. In fact, these natural disasters are among the most common to affect U.S. homeowners. Given the frequency and potential consequences of floods, you should take steps to financially protect yourself and your property, including acquiring and maintaining adequate flood insurance. 

Why Is Flood Insurance Important? 

Like any significant financial investment, your home must be secured by sufficient insurance. In most cases, standard homeowners insurance policies do not include coverage for floods. As such, purchasing a separate flood insurance policy or adding a suitable endorsement to your homeowners coverage is highly advisable, especially for those in areas at high risk of floods.  

All homes in Florida—not just those along the coast—are considered to be in a flood zone. The only difference is the type of zone the property is located in, which determines the rating. If your property is located in an A zone, your mortgage company will require you to purchase a policy. If your property is located in an X zone, you will not be required to purchase a policy, but you are still in a flood zone, and you can still flood anywhere in Florida. Without augmenting your insurance portfolio to include this coverage, even a single inch of water seeping into your home could inflict catastrophic losses that will need to be paid for out of pocket.  

What Does Flood Insurance Cover? 

Although the details of flood insurance may vary, these policies generally include the following pair of components:  

• Structures—This part of your flood insurance policy can financially protect the physical elements of your home, such as its foundations, windows, electrical and plumbing systems, furnaces, water heaters and permanent fixtures (e.g., cabinets, paneling and bookcases). 
• Contents—Your flood insurance can also provide financial assistance for losses involving your belongings, including electronics, furniture, clothes, currency and portable appliances (e.g., microwaves).  

What Is FEMA’s Role in Providing Flood Insurance?  

The Federal Emergency Management Agency (FEMA) oversees the National Flood Insurance Program (NFIP). Using this program, the government works with a network of approved private insurance companies to provide flood insurance to homeowners, renters and businesses. These policies are available in areas where local government officials have adopted NFIP floodplain management regulations. When seeking to financially protect your home from floods, you should not procrastinate, as NFIP policies include a 30-day waiting period before coverage begins.  

How Much Does Flood Insurance Cost? 

Your flood insurance premiums may vary depending on the following criteria: 

• Location 
• Flood risk (e.g., elevation, proximity to bodies of water, flood history) 

• Property details (e.g., building age, materials used) 
• Policy details (e.g., coverages, endorsements, deductibles, limits) 

Get the Right Coverage 

At Ramey Insurance Agency, our dedicated staff has over two decades of experience helping individuals, families and businesses secure optimal coverage. We understand the risks and exposures for those in the Venice, Sarasota and North Point areas and are well-equipped with the knowledge and experience to help you acquire an ideal flood insurance policy.  

Visit our website or call 941-497-2468 to get started today.  

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.