Do I Really Need a Separate Flood Policy?

Flooding is the most common natural disaster in the United States.

It’s also the most expensive. Flooding costs homeowners, insurers and the government billions each year.

Do you have most of your wealth tied up in your house? If so, you may be risking financial ruin without adequate flood insurance coverage.

In New Jersey, your homeowner’s policy excludes damages resulting from a flood.

If you’ve purchased a home in a high-risk area of the FEMA flood map, your mortgage provider requires a separate flood insurance policy.

Most homeowners learn about this for the first time when buying property near a river, lake, or the beach.

Residential or commercial property owners in low-risk areas often forgo purchasing coverage. They believe they are safe from flooding or flood damage. In reality, 20% of all flooding events across the country come in areas considered low risk.

Food insurance rarely comes to mind unless a major storm is looming or the news predicts flooding nearby.

As we learned from the past, the Federal Government will provide some help in the event of mass flooding. But, there are steps that must align before that happens. And that help is usually in the form of a loan that is insufficient to address full damages.

This is where a separate policy can help. We’ll start with a quote on your primary dwelling, vacation house, or business in New Jersey.

We can insure you through the NFIP (National Flood Insurance Program) or in the private market.

We’ll review what’s covered, what isn’t, and help you decide if it makes sense to have your own flood policy.