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When do you need Flood Insurance?

By August 30, 2023Insurance

Flood insurance is a type of coverage designed to protect individuals, homeowners, and businesses from financial losses caused by flooding events. Flooding can result from various sources, including heavy rainfall, rapid snowmelt, storm surges, and the overflow of rivers, lakes, or oceans.

While standard homeowners’ insurance policies typically cover damages resulting from things like fire, theft, and windstorms, they usually do not provide coverage for flood-related damages. This is where flood insurance becomes crucial.

Here are some situations and circumstances when you need flood insurance:

High Risk Flood Zones

If you live in an area designated as a high-risk flood zone by the Federal Emergency Management Agency (FEMA), your mortgage lender may require you to have flood insurance. High-risk zones are areas prone to frequent and severe flooding, such as coastal regions, floodplains, and areas near rivers and lakes.

Mandatory Requirements

If you receive federal disaster assistance after a flooding event, you may be required to purchase and maintain flood insurance as a condition of receiving aid in the future. This is to encourage proactive risk management and reduce the burden on government assistance programs.

Protection of Assets

If your property is situated in a moderate- to low-risk flood zone, you might still consider obtaining flood insurance. Flooding can happen unexpectedly due to factors like heavy rainfall, rapid snowmelt, or localized drainage issues. Having coverage can help you protect your property and assets from unexpected flood-related damages.

Peace of Mind

Even if you’re not in a designated flood-prone area, it’s worth considering flood insurance for peace of mind. Climate change and unpredictable weather patterns can lead to unexpected flooding in areas that were historically considered safe. Having flood insurance ensures you’re financially prepared for such unforeseen events.


If you own your home outright and aren’t required by a mortgage lender to have flood insurance, the decision to get coverage is entirely up to you. It’s a good idea to assess the flood risk in your area and consider your financial ability to recover from potential flood-related losses.

Business Owners

Businesses located in flood-prone areas should strongly consider flood insurance. The financial impact of flooding on a business can be devastating, leading to property damage, loss of inventory, disruption of operations, and potential liability issues.

Changing Risk Factors

If there are changes in the local environment, such as new construction, changes in drainage patterns, or alterations to nearby water bodies, your flood risk could change. It’s important to stay updated on these changes and adjust your insurance coverage accordingly.

It’s important to note that there is typically a 30-day waiting period from the time you purchase flood insurance until it becomes effective. This means you can’t buy coverage just before a flood event to receive immediate protection. To determine your flood risk and explore insurance options, we are happy to help!