• Overflow of inland or tidal waters; or
• Unusual and rapid accumulation or runoff of surface waters from any source; or
• Mudflow; or
• Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above."

• structural damage
• furnace, water heater and air conditioner
• flood debris clean up
• floor surfaces such as carpeting and tile

• Flood insurance compensates you for all covered losses.
• Coverage is relatively inexpensive.
• You can depend on being reimbursed for flood damages, even if the President does not declare a Federal disaster.
• You do not have to repay a loan, as you might have to with many Federal disaster relief packages. Your covered losses are paid in full.
• You can count on your claim being paid in the event of a flood loss because NFIP flood insurance is backed by the Federal government.
• Your agent can help you handle your claim quickly, so that you will not have to put your life on hold if a flood damages your property. You can even request a partial payment immediately after the flood, which can help you recover even faster.

What are your flood options?

There's something you should know: Flood losses aren't covered by your homeowners insurance policy.

Floodwaters have the power to damage not only your home and sense of security, but also your financial future. How can you protect your most important investment in case of flooding? What are your flood options?

Option 1: Hope that you'll receive Federal disaster assistance if a flood hits.

Many people wrongly believe that the U.S. government will take care of all their financial needs if they suffer damage due to flooding. The truth is that Federal disaster assistance is only available if the President formally declares a disaster. Even if you do get disaster assistance, it's often a loan you have to repay, with interest, in addition to your mortgage loan that you still owe on the damaged property.

Most importantly, you must consider the fact that if your home is flooded and disaster assistance isn't offered, you'll have to shoulder the massive damage costs alone.

The bottom line? If you're looking for secure protection from financial loss due to flood damage, Federal disaster assistance is not the answer.

Option 2: Buy flood insurance and stay protected no matter what.

When disaster strikes, flood insurance policyholder claims are paid even if a disaster is not Federally declared.

Flood insurance means you'll be reimbursed for all your covered losses. And unlike Federal aid, it never has to be repaid.
As long as your community participates in the National Flood Insurance Program (NFIP), you're eligible to purchase flood insurance. To find out if your community participates in the NFIP, check the NFIP Community Status Book on FEMA.gov.

As a homeowner, you can insure your home up to $250,000 and its contents up to $100,000. If you're a renter, you can cover your belongings up to $100,000. As a non-residential property owner, you can insure your building and its contents up to $500,000.

In general, a policy does not take effect until 30 days after you purchase flood insurance. So, if the weather forecast announces a flood alert for your area and you go to purchase coverage, it's already too late. You will not be insured if you buy a policy a few days before a flood.

A flood insurance policy is easy to get, affordable and offers invaluable peace of mind. With flood insurance, you know you're covered … no matter what.

What does community participation in the National Flood Insurance Program mean and how does that affect a homeowner?

Communities, i.e., local governments, decide to participate in the National Flood Insurance Program (NFIP). Specifically, communities that agree to manage flood hazard areas by adopting minimum regulatory standards may participate in the NFIP.

If a community does not participate in the program, property owners in that jurisdiction are not able to purchase federally backed flood insurance. Also, federal grants, loans, disaster assistance, and Federal mortgage insurance are unavailable for the acquisition or construction of structures located in the floodplain as shown on the NFIP maps.

Similarly, if a community does not participate in the program, property owners are not subject to federal requirements of mandatory flood insurance. However, a lender is still required to inspect any flood maps to determine flood hazard risk and provide notice of such risk. A lender may require a borrower to obtain flood insurance even in the absence of a federally mandatory requirement.

What to ask your flood insurance agent:

Keep these questions in mind as you visit with your flood insurance agent. Together, you will determine the flood insurance coverage that's right for you.

• Does my community participate in the NFIP?
• Can you confirm which flood zone I live in?
• Does my community participate in the NFIP Community Rating System (CRS)?
• If so, what is my community's CRS rating?
• Do I qualify for a CRS rating discount?
• What exactly will be covered in case of flood damage?
• How will my premium costs be affected by choosing coverage for building only, contents only or building and contents?
• How will my premium costs be affected if I choose a higher deductible?
• What is the policy fee?
• Are there additional expenses or fees I should be aware of?

What to Ask Your Real Estate Agent or Lender

Real estate professionals have built a business around educating clients on market conditions and homes. However, they may not know everything about flooding and flood insurance. By doing a little bit of homework and talking with your Real Estate Agent, you can make a better decision for you and your family.

• What is the property's flood risk?
  It's important to know what type of risk you are buying into. Even if you aren't buying a home along the ocean or river, it can still be at a risk for flooding. You can estimate the property's flood risk online.
  
• Does this community participate in the National Flood Insurance Program?
  You must live in a community that participates in the National Flood Insurance Program (NFIP) to qualify for National Flood Insurance. Find out if the community participates in the NFIP and the kinds of NFIP resources available in your community.
  
• Is flood insurance mandatory for this property? Will the lender require it?
  The purchase of flood insurance is mandatory for all Federal or federally-backed financial assistance for the acquisition and/or construction of buildings in high-risk flood areas (Special Flood Hazard Areas or SFHAs). 
  
  Flood insurance must be maintained during the term of the loan and is required for the lesser of the maximum amount of available NFIP coverage or the outstanding principal balance of the loan (less the land value).
  
  If the property is not in a high-risk area, but instead in a low- to moderate-risk area, the law does not require flood insurance; however, it is recommended since historically about one-in-four flood claims come from these low- to moderate-risk areas. Note that if during the life of the loan the maps are revised and the property is now in the high-risk area, your lender will notify you that you must purchase flood insurance. If you do not purchase flood insurance, the lender will force place it, which could be at a much higher rate.
  
• Does the current homeowner have flood insurance?
  If the seller of the property has flood insurance coverage on the building, that policy can be assigned to the buyer at the time of closing. If the mortgage company requires flood insurance as a condition of the loan, the lender may escrow flood insurance premiums – making it easy to ensure that you will not get caught without flood insurance when a flood threatens your new home.
  
• Is the property I'm purchasing near a dam or levee?
  Dams and levees are designed to provide only a certain level of protection and can be overtopped and even fail in large flood events. Also, levees can and do decay over time, and maintenance can become a serious challenge. When levees do fail, or are overtopped, they fail catastrophically. The flood damage after a levee failure can be more significant than if the levee was not there. For these reasons, people living behind these levees need to understand the flood risks they face. Local officials can provide more information about nearby levees and the related flood risk the property faces.
   
• What are the disclosure rules for my state?
  Disclosure rules vary from state to state, but most require the seller to disclose any problems they know about. However, the rules on disclosure vary according to whether the seller is an individual or a bank, and whether they are represented by an agent or not.
  
  Some states, such as California, require that the seller reveal things known about the property such as natural hazards and flood damage that has not been fixed.
  
• Have you received a Transfer Disclosure Statement?
  If your agent received a "Transfer Disclosure Statement" from the seller, then you probably live in a state that requires disclosure. Whether you ask about flooding or not should be immaterial - if a seller knows about a problem, they should disclose it.
  
• Do you know a good inspector?
  Almost all Realtors recommend that a buyer order a professional home inspection. A thorough inspection should help you determine if there has been water damage - termite inspections often point out areas of wood rot caused by water damage.

What should I do to prepare for a flood?

Before a flood:

Besides insuring your property, there are other things you can do to prepare for a flood: minimize potential loss to your home and ensure your family's safety.

• Make sure any photos or videos of all of your important possessions are in a safe place. These documents will help you file a full flood insurance claim.
• Store important documents and irreplaceable personal objects (such as photographs) where they won't get damaged. If major flooding is expected in your area, consider putting them in a storage facility.
• Move furniture and valuables to the upper levels of your home.
• Make sure your sump pump is working.
• Clear debris from gutters and downspouts.
• Buy and install sump pumps with back-up power.
• Anchor fuel tanks. An unanchored tank in your basement can be torn free by floodwaters, and the broken supply line can contaminate your basement. An unanchored tank outside can be swept downstream, where it can damage other houses.
• Have a licensed electrician raise electric components (switches, sockets, circuit breakers and wiring) at least 12" above your home's projected flood elevation.
• Place the furnace and water heater on masonry blocks or concrete at least 12" above the projected flood elevation.
• If your washer and dryer are in the basement, elevate them on masonry or pressure-treated lumber at least 12" above the projected flood elevation.
• Have a family emergency plan:
• Post emergency telephone numbers by the phone. Teach children to dial 911.
• Plan and practice a flood evacuation route with your family.
• Ask an out-of-state relative or friend to be the "family contact" in case your family is separated during a flood. Make sure everyone in your family knows the name, address, and phone number of this contact person.
• Don't forget to have a plan for you pets.

During the flood:

You've done everything in your power to prepare for a flood. You've secured a flood insurance policy, and made your home flood-ready. Congratulations! You've become "flood smart."

Now, the floodwaters are rising, and there's nothing you can do to stop them. But there are things you can do to make sure your family stays safe until the water levels drop again.

• Fill bathtubs, sinks, and jugs with clean water in case water becomes contaminated.
• Listen to a battery-operated radio for the latest storm information.
• If local authorities instruct you to do so, turn off all utilities at the main power switch and close the main gas valve.
• If told to evacuate your home, do so immediately.
• If the waters start to rise inside your house before you have evacuated, retreat to the second floor, the attic, and if necessary, the roof.
• Floodwaters may carry raw sewage, chemical waste and other disease-spreading substances. If you've come in contact with floodwaters, wash your hands with soap and disinfected water.
• Avoid walking through floodwaters. As little as six inches of moving water can knock you off your feet.
• Don't drive through a flooded area. If you come upon a flooded road, turn around and go another way. A car can be carried away by just 2 feet of flood water.
• Electric current passes easily through water, so stay away from downed power lines and electrical wires.
• Look out for animals—especially snakes. Animals lose their homes in floods, too.

After the Flood:

Your community has been flooded, and your property has suffered flood damage. Stay calm and stay safe in the days ahead by following these instructions:

• If your home has suffered damage, call the agent who handles your flood insurance to file a claim. If you are unable to stay in your home, make sure to say where you can be reached.
• Take photos of any water in the house and save damaged personal property. This will make filing your claim easier. If necessary, place these items outside the home. An insurance adjuster will need to see what's been damaged in order to process your claim.
• Check for structural damage before re-entering your home. Don't go in if there is a chance of the building collapsing.
• Do not use matches, cigarette lighters or other open flames upon re-entering your property. Gas may be trapped inside. If you smell gas or hear hissing, open a window, leave quickly, and call the gas company from a neighbor's home.
• Keep power off until an electrician has inspected your system for safety.
• Avoid using the toilets and the tap until you have checked for sewage and water line damage. If you suspect damage, call a plumber.
• Throw away any food -- including canned goods -- that has come in contact with floodwaters.
• Boil water for drinking and food preparation until local authorities declare your water supply to be safe.
• Salvage water-damaged books, heirlooms and photographs using restoration tips from the NFIP.
• Follow local building codes and ordinances when rebuilding. Use flood-resistant materials and techniques to protect your property from future flood damage.

Flood Facts:
 
Did you know?

• Floods and flash floods happen in all 50 states.
• Everyone lives in a flood zone.
• Most homeowners insurance does not cover flood damage.
• If you live in a Special Flood Hazard Area (SFHA) or high risk area, your mortgage lender requires you to have flood insurance.
• Just an inch of water can cause costly damage to your property.
• Flash floods often bring walls of water 10 to 20 feet high.
• A car can easily be carried away by just two feet of floodwater.
• Hurricanes, winter storms and snow melt are common (but often overlooked) causes of flooding.
• New land development can increase flood risk, especially if the construction changes natural runoff paths.
• Federal disaster assistance is usually a loan that must be paid back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month ($2,880 a year) for 30 years. Compare that to a $100,000 flood insurance premium, which is about $500 a year ($33 a month).
• If you live in a low to moderate risk area and are eligible for the Preferred Risk Policy, your flood insurance premium may be as low as $112 a year, including coverage for your property's contents.
• You are eligible to purchase flood insurance as long as your community participates in the National Flood Insurance Program.
• It takes 30 days after purchase for a policy to take effect, so it's important to buy insurance before the floodwaters start to rise.

Flood Statistics:

Did you know?

• Your home has a 26% chance of being damaged by a flood during the course of a 30-year mortgage, compared to a 9% chance of fire.
• Roughly 25% of all claims paid by the NFIP are for policies in low- to moderate-risk communities.
• The average annual U.S. flood losses in the past 10 years ('96-'05) was more than $2.4 billion.
• When your community participates in the Community Rating System (CRS), you can qualify for an insurance premium discount of up to 45%. Read more about CRS Ratings.
• The NFIP awarded nearly $16 billion in flood claims in 2005.
• Since 1978, the NFIP has paid $31.4 billion for flood insurance claims and related costs (as of 3/31/06).
• Over 5 million people currently hold flood insurance policies in more than 20,200 communities across the U.S.