Did you know that your homeowners insurance does not cover flood damage? Insurance against flood must be obtained separately. A flood insurance policy also reimburses you for the work that you and other family members did to protect your home like placing sandbags around your home, moving furniture and removal of debris.
The Federal Emergency Management Agencyís (FEMA) maps are important when it comes to flood insurance because if they show that your home sits in a 100-year flood plain, you must buy federal flood insurance in order to get a mortgage. If you live outside a high-risk zone, or if you no longer have a mortgage, flood insurance is optional.
If you own a home in a documented flood zone, there's a 26 percent chance of experiencing a flood over the course of a 30-year mortgage.1And while they are more common in some areas, floods can happen anywhere. In fact, nearly 20 percent of all flood insurance claims each year come from property outside of high-risk areas.2