If your property is in an area with a high risk of flooding (a "Special Flood Hazard Area"), you'll likely need flood insurance to get a loan. Even if you live in an area less likely to flood, you may still want to buy flood insurance.
The National Flood Insurance Program
Flood insurance is widely available through the National Flood Insurance Program (NFIP).
There are, however, limits to federal flood insurance. For commercial structures, for example, the NFIP maximum is $500,000 for the building and $500,000 for the contents. Even small businesses may need supplemental coverage.
When your coverage starts
Your NFIP policy starts covering your building 30 days after the policy is written, unless the policy is required for a mortgage.
If you have a policy from a surplus line insurer, your coverage usually starts immediately.
Tips on flood cleanup and insurance claims
- Don't drive on flooded roads.
- Check for damage before entering your home or business. Flood-damaged buildings can collapse. Be careful of gas leaks or electrical wires in flooded basements.
- If you have damage, call your insurer or agent.
- Take photos or videos. Make a list of lost or damaged items.
- Even if you didn't have flood insurance, you may qualify for money from the federal government.
- Talk to your insurer before making permanent repairs or throwing away damaged property.
- Save receipts from anything you buy to help deal with damage, such as sandbags or pumps. Your insurer might pay you back.
- If you have to move, make sure your insurer or agent can contact you.
- Save receipts for temporary repairs, temporary housing, food, etc.