Don’t Make a Costly Mistake! Flood Insurance Myths vs. Facts

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Article from FEMA's Individual and Community Preparedness monthy newsletter. Subscribe here. 
 
April 4, 2023
Unfortunately, there are many misconceptions and misunderstandings about flooding and flood insurance. If these misconceptions continue to go unchecked, too many Americans will continue to go unprotected from the financial damages of flooding. It's a costly mistake that FEMA and its National Flood Insurance Program (NFIP) would like to help fix.   
The NFIP defines flooding as an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties.  

Below are some commonly held myths about flood< insurance and the facts to help clarify these misconceptions: 

Myth: Flood insurance is available only to homeowners. 

Fact: Renters and business owners can purchase flood insurance, too. Flood insurance is available to protect homes, condominiums, apartments, non-residential buildings, commercial structures and their contents. Learn more about what flood insurance does and does not cover. 

Myth: I do not need flood insurance because homeowners, commercial property and renters insurance policies cover flooding. 
Fact: Most policies do not cover damage due to flooding. Flood insurance must be purchased separately to cover damage directly caused by a flood. Just one inch of floodwater in an average-size home can cause roughly $25,000 in damages. 

Myth: Only people in high-risk flood zones should buy flood insurance. 
Fact: Flooding can happen to anyone, anywhere. Your flood zone is not the only factor that determines your flood risk. Storms are becoming more frequent due to changing weather patterns. Many other factors, such as recent construction, fires, a breached dam or oversaturated land, can lead to flooding. More than 40% of NFIP claims have come from outside high-risk flood zones. 

Myth: My flood insurance policy will go into effect immediately. 
Fact: There is normally a 30-day waiting period between a policy application and the date it goes into effect. There are some exceptions to this waiting period. Talk to your agent to learn more. 

Myth: My insurance covers named storms, so I am covered for flooding resulting from a named storm. 
Fact: Most homeowners and commercial insurance policies do NOT cover flood damage resulting from a named storm, such as a hurricane. Disaster assistance is not a substitute for flood insurance. FEMA Individual Assistance (IA) typically provides limited compensation to cover very basic needs and is available only when a disaster is formally declared by the president. Flood insurance helps provide more comprehensive coverage. Learn more about filing a flood insurance claim. 

The main fact is this: Flooding can happen anywhere at any time. Flood insurance is the best way to financially protect the life you have built, and it can help you recover faster after a flooding event. Remember, flood insurance policies normally have a 30-day waiting period to go into effect, so don't wait until it's too late. Learn more about flood risks and flood insurance and how to contact a provider near you and access educational resources at floodsmart.gov. 

Contact: FEMA-prepare@fema.dhs.gov  

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