What is covered by FEMA flood
FEMA Flood insurance policies cover physical damage
to your property and possessions. The most common
flood policy has limits of $250,000 for your house
and $100,000 for your personal property and you can
purchase excess flood coverage to extend both of
Is FEMA an insurance company?
Private insurance companies and the federal
government (FEMA) work together to provide
government backed flood insurance coverage.
Accordingly, insurance companies administer the
program, but the federal government funds the
What is the difference between the
homeowners insurance and flood
The difference between what is covered under the
homeowner's insurance and what is covered under
this policy really depends on the source of flooding.
If the flooding is an accumulation of surface water from
outside your property a flood policy is meant to cover
this. If it is natural water entering from an opening
in the roof, walls, or windows or if the water is
processed tap water that leaks from your water pipes
or appliances (water heater, washer), it should be
covered under most homeowners policies.
Why is my lender requiring the
purchase of flood insurance?
Lenders are mandated under the Flood Disaster
Protection Act of 1973 and the National Flood
Insurance Reform Act of 1994 to require the
purchase of flood insurance by property owners
who acquire loans from federally regulated,
supervised, or insured financial institutions for
the acquisition or improvement of land,
facilities, or structures located within or to be
located within an Special Flood Hazard Zone.
How are flood insurance premiums
A number of factors are considered in determining
the premium for flood insurance policy. They
include the amount of coverage purchased; the
deductible amount selected; the flood zone;
location; age of the building; building occupancy;
and design of the building (foundation type, among
other things). For buildings in Special Flood
Hazard Zones the elevation of the building in
relation to the Base Flood Elevation (BFE) is also
a factor in determining the premium.
How do I purchase flood insurance?
A flood insurance policy may be purchased from any
licensed property insurance agent or broker who is in
good standing in the state in which the agent is
licensed and represented by an insurance company
that is an administrator for FEMA's flood insurance
program. The agents role is to help you complete the
flood insurance application, obtain the required
supporting documentation, and share the rates for
obtaining a flood insurance policy.