As you may know, your Homeowners Insurance does not cover flood damage. According to NFIP, nearly 40% of all their claims occur in “non-mandatory” flood zones. Their average payout for a claim is $52,000. Another interesting fact is just 1 inch of water can cause $25,000 of damage to your home. The good news is that there are now two options for Flood insurance. They are as follows:

NFIP (National Flood Insurance Program)

• This is a national program is backed by FEMA
• The cost is based on government mapping of zones and their likelihood to flood.
• If you are in a “higher” frequency flood zone, you are required to obtain an Elevation Certificate. These certificates can be quite expensive.
• Unless coverage is being required by a lender at the close of escrow, there is a mandatory 30 day waiting period.
• Maximum amount of coverage available is $250,000 on the Building and $100,000 on Contents. Loss of Use is NOT available.
• Requires annual payment in full.

Private Flood Insurance

• Not backed by FEMA - but you are protected by the California Insurance Guarantee Association as long as the carrier is licensed to do business in the state of California.
• Rates are based at the location level, which means lower rates in many instances.
• No Elevation Certificate.
• No 30 day waiting period.
• Coverage limits in excess of $1M available. Optional Loss of Use up to $50,000.
• Payment options available.

If you don’t currently have Flood Insurance, now is a great time to think about it. If you do have Flood Insurance, but it is currently through the NFIP, I would encourage you to call us for a No-Obligation quote!