What you need to know about Flood Insurance

Flood Zones—Technically called Special Flood Hazard Areas (SFHAs) are designated by the Federal Emergency Management Agency (FEMA). National Advisors Group can help you determine if your property is in an SFHA where flood insurance can protect you against a catastrophic loss – and it may be required by your mortgage lender, or if it’s considered to be in a preferred zone which is an area that is less likely to flood. If you live in a low-risk flood zone, affordable coverage known as ‘preferred risk’ policies can give you the protection you need at the right price. Just because your home is located outside of an SFHA doesn’t mean it will never experience a flood.


    Floods have become the most common and costly natural disaster in the United States. While floods are most common in coastal areas and near rivers and lakes, a flood can happen anywhere. Even in dry areas it is not uncommon for built up rain waters to flow into basement windows and down stairwells causing considerable damage. Just one inch of water in an average sized home can cause more than $25,000 in damage.

    Anyone is eligible to purchase flood insurance even if your property is not located in an SFHA. In fact, more than 25% of flood insurance claims come from areas where flood insurance is not required by lenders. Torrential rains, melting snows, diverted water, or dam failures can all spawn unexpected flooding.

    Federal disaster assistance is not always the answer. Most types of federal disaster assistance require a presidential disaster declaration and come in the form of low-interest disaster loans that must be repaid – with interest.

    Most Homeowners Insurance policies will not cover flood damage. Homeowners Insurance covers most other natural and man-made disasters, but floods are often an exception. That’s because of the (usually) predictable ways in which they happen and the extreme damage they may cause. Only flood insurance reimburses you for flood damage, providing the necessary funds for recovery – and you don’t have to pay it back.

    With so many available options, it pays to speak to one of our flood experts to ensure you don’t leave yourself exposed, as the worst time to find out you’re not properly covered is when you go to file a claim. To select the best flood policy for your unique needs, speak with National Advisors Group today.

    National Advisors Group works with the National Flood Insurance Program (NFIP) and other quality flood providers to offer the best coverage. To get the most out of your flood insurance policy, the expert agents at National Advisors Group will work with you to build a customized policy package that suits your unique needs. Protect your investment today.