In order to determine if you are required to have flood insurance, you need to consult the effective Flood Insurance Rate Map (FIRM) or Digital FIRM (DFIRM) to see if you reside in an area that has been designated a Special Flood Hazard Area (SFHA). If you do indeed reside in one of these hazard areas, then you must obtain flood insurance. If you have a mortgage, your lender will likely require coverage. Be careful, the lender may only require insurance in the amount of the loan, and be sure to discuss the amount you need with your insurance agent. Have your insurance agent explain the advantages of contents coverage because the lender will not require it. Ask anyone who has ever had flood damage in their home or business, and they will tell you how important contents coverage can be.
The type of insurance policy to be purchased and amount of insurance required will be determined by a variety of factors, including:
- What type of structure is to be insured (i.e., single-family house, multiple-family residential building, condominium, business, manufactured home)
- Where the structure is located (i.e., inside the Special Flood Hazard Area shown on the FIRM, outside the Special Flood Hazard Area)
- When the structure was built
- The elevation of the structure
- The value of the insurable contents within the structure
To learn more about how to purchase this important protection for your home, family, or business, please visit the FloodSmart Web Site.
If you do not live in a Special Flood Hazard Area, do you need flood insurance? Yes, you do. More than one-fourth of the structures damaged by flooding are located outside the Special Flood Hazard Area.