Flood Insurance

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What Is Flood Insurance?

Flood insurance is a form of property insurance that covers homes for water damage caused by flooding, such as heavy or prolonged rain, melting snow, coastal storm surges, blocked storm drainage systems, or levee dam failure. A flood is often considered a significant event in many areas, and the damage or destruction it causes is insured if you do not purchase additional coverage.


  • Flood insurance is a form of property insurance that covers your home for water damage caused by flooding.
  • Flood insurance coverage is available for both residential and commercial properties.
  • The federal National Flood Insurance Program (NFIP) provides flood insurance to homeowners in participating jurisdictions, as well as those determined to be in the NFIP-designated floodplains; nevertheless, the policies are provided by private insurers.
  • The cost of a flood insurance policy is determined by the NFIP-designated flood zone in which the property is located, as well as the property’s age, elevation, and number of stories.

A Quick Overview of How Flood Insurance Works

Catastrophe insurance, such as flood insurance, is separate from the basic hazard insurance found in most homeowners’ policies. Standard homeowners insurance covers interior water damage caused by burst pipes or severe weather events like tornadoes and rainstorms. However, it typically does not cover destruction or damage caused by flood waters. Property owners living in areas prone to this sort of natural disaster usually need special coverage.

Flood insurance is a form of a catastrophe or special risk coverage that protects you against unexpected financial loss associated with a flood. The policyholder (the house or property owner) pays an annual premium based on the structure’s flood potential and the deductible they pick. If flooding caused by an external hazard (rain, snow, storms, collapsed or failed infrastructure) damages or destroys your property or its contents, you receive cash for whatever money is required to repair the damage and rebuild the structure up to the policy limit. If you want your home protected, you must buy a separate policy for the dwelling and its contents. Additionally, if the rising floodwaters did not cause the sewer backup, you will also need to buy a rider to cover that.

All homes and commercial properties are eligible for flood insurance policies.

The National lood Insurance Program (NFIP)

The (NFIP) National Flood Insurance Program is a government-sponsored program that offers insurance to homeowners in areas determined to be at high risk for flooding. The actual insurance policies are provided by private insurance firms rather than the NFIP or FEMA.

The National Flood Insurance Program (NFIP) maintains flood zones and maps of the United States, which identify areas most vulnerable to flooding. The National Flood Insurance Program and FEMA regularly update their flood zone maps.

If there is a low risk of annual flooding, it’s safe to say that your property is in little or no danger from the elements.

Properties in high-risk zones are identified as such. They are classified further, with information on potential floodwater heights and expected occurrences throughout a 30-year mortgage provided for each one. Properties that are labeled V are comparable to those in zone A. These coastal regions are high risk due to their location near the water’s edge.

Many people are unfamiliar with the term “Zone D.” This zone indicates that a decision has not been made for the region, which might perplex homeowners. To accommodate changing weather patterns and artificial environmental modifications such as dams and levees, flood zone maps are constantly updated (for the first time in 23 years!).

The Cost of Flood Insurance

Flood insurance premiums are set by the National Flood Insurance Program (NFIP), the Federal Emergency Management Agency (FEMA) agency. The NFIP establishes pricing standards for flood insurance policies, and there will be no cost difference between insurers. The National Flood Insurance Program and the Federal Emergency Management Agency (FEMA) always have updated flood zone maps.

Your insurance agent will consider things like the location and structure of your home, as well as the type of coverage you’ve chosen (replacement cost value or actual cost value). Price varies depending on the flood zone designation, age of the property, and several floors. A Preferred Risk Policy (a less-expensive flood insurance policy) covers both building and contents for one price.

Communities implementing flood protection measures may also qualify for discounts under the NFIP. As a result, premium prices can vary considerably from year to year.

Residential structures are covered up to $250,000 in building coverage and $100,000 in content coverage with NFIP policies. For businesses, the maximum is set at $500,00 for both building and content coverage.

While you could always get coverage on your own, it’s often best to start with the company that already provides insurance for your home. If you want to protect your home for more than the standard amount, keep in mind that premiums will not be regulated (however this technique might still offer advantages).

Facts about flood insurance

The following are some tips to help you avoid the financial devastation that tends to accompany this highly prevalent calamity.

In the United States, nearly all natural disasters involve flooding. And while you may not think your home is at risk, flood damage can strike any area—regardless of its risk level. Homeowners’ policies don’t cover flooding, so it’s essential to learn about flood insurance protections even if you live in a low or moderate-risk area.

The risk of losing property or possessions to a flood

FEMA reports that floods are the most common natural disaster in the United States, occurring in every region. 90 percent of all natural disasters involve flooding, including inland flooding, flash floods, and seasonal storms.

If you’re moving into a new home, apartment, or business location, check with your mortgage lender, local officials, or insurance professional to see whether the area has previously flooded. The National Flood Insurance Program (NFIP) can also provide flood risk data for your region.

Even if you don’t live in a high-risk area, you may be exposed to loss from a flood since 20% of all flood claims are filed in low-to-moderate risk areas. That implies you should understand how to prepare for the possibility of a flood, understand your insurance choices, and get adequate coverage.

Flood Insurance Basics

  • Flood insurance functions a bit differently than other policies.
  • Floods will not be reimbursed if you only have standard homeowners or renters policy- you must purchase separate flood insurance.
  • Most flood insurance is given to those who need it through the federal government. Homeowners, renters, and businesses can purchase these policies from an insurer under contract with FEMA. Those living in areas where the local government has adopted adequate flood plain management regulations can participate in this program.
  • Flood insurance covers direct physical losses caused by floods and flood-related erosion incurred from water levels exceeding cyclical maxima during a severe storm, flash flood, abnormal tide surge, or any other similar event that causes flooding.
  • You must purchase two separate flood insurance policies to cover your home’s structure and its contents. The policy for the building will cover replacement costs, but the procedure for personal belongings is based on actual cash value only.
  • The NFIP provides $250,000 maximum coverage for the structure of your home and $100,000 for its contents in the event of a flood. Private insurers offer this option if you require excess coverage over the limits set by NFIP.
  • According to most standard automobile insurance policies, cars damaged in floods are only covered under the optional, comprehensive portion.
  • The National Flood Insurance Program (NFIP) offers complete coverage for up to $500,000 per structure and up to $500,000 per item of property. You may also purchase “excess” insurance coverage to rebuild properties worth more than the specified amounts.

Buying flood insurance

It’s simple to get – You may buy NFIP flood insurance directly from an insurance agent. The majority of insurance firms write and maintain NFIP policies.

There is a waiting period – purchasing a flood insurance policy requires a 30-day waiting period, so don’t put it off until the last minute.

Homeowners can supplement their NFIP policy with “excess” insurance from private insurers, which offers full coverage for water damage protection beyond the standard FTP policy maximums. Some private insurers are also starting to show “first dollar” flood policies.

What if I don’t have flood insurance and there’s a flood?

Having flood insurance is the most excellent way to protect your assets from the expense of a flood-related disaster.

Without insurance, the most economical recovery option is a loan. If your community is designated a disaster zone, the federal government frequently provides no-interest or low-interest loans as part of the recovery process. These loans must be repaid; however, this does not relieve you of responsibility for all of your losses or damages.

To Contact Cindy Larsen Insurance, please call us at 763-783-1188, or you can visit our office at 2705 Bunker Lake Blvd NW Suite 206 Andover, MN 55304.

Professional Service with a Personal Touch. Independent Agent with Atlas Insurance

“I stumbled across Cindy Larsen 15 years ago when we bought our first house, I was so impressed with her and we quickly switched all of our autos and toys over to her too. For the past 14 years I have been a mortgage broker, and I see thousands of home owner policies come across my desk so I know when someone is paying too much. I have referred all my clients I can to Cindy, because of the great rates, service, and trustworthiness she has provided our family and all my clients.”


Alexandria, MN

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Cindy Larsen Insurance

Independent Agent with Atlas Insurance

2705 Bunker Lake Blvd NW Suite 206
Andover, MN 55304

Office: 763-783-1188
Text: 763-296-2810
Fax: 763-754-4028

Monday – Friday 8 am to 5 pm

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