What is Flood Insurance?

June 13, 2023

Flood insurance is a type of insurance coverage that protects against property damage and financial losses caused by flooding. It provides compensation for losses and damages to buildings, structures, and their contents resulting from flood events.

Standard homeowner's insurance policies typically do not cover flood-related damages, so flood insurance is often purchased as a separate policy. This is because flooding is considered a specific and high-risk type of peril that requires specialized coverage.

Flood insurance policies are commonly offered through the National Flood Insurance Program (NFIP) in the United States, which is managed by the Federal Emergency Management Agency (FEMA). The NFIP provides flood insurance to property owners in participating communities to help mitigate the financial impact of flooding.

It's important to note that flood insurance typically has a waiting period before coverage takes effect, often 30 days from the date of purchase. This waiting period is designed to prevent people from buying insurance just before an approaching flood.

The coverage and cost of flood insurance vary depending on factors such as the property's location, flood risk zone, and the coverage limits chosen. Insurance policies may cover both the structure of the building and its contents, but it's essential to review the policy details to understand the extent of coverage provided.

If you live in an area prone to flooding or near bodies of water, it's advisable to consider purchasing flood insurance to protect your property and belongings in the event of a flood.  Contact McDaniel Insurance Agency for your flood insurance needs.   You can text/call a Shelbyville insurance agent in our office at 502.909.0920 or email Lauren@McDanielins.com.