GT Insurance Blog

Insurance problems and cures

Flood Insurance

with 2 comments

Flood is one of the most ignored insurance coverages. Therefore, when a flood happens, it is very likely to put a business out of business permanently, or damage a home that can not then be rebuilt.

The National Flood Insurance Program (NFIP) says that 25% of its claims are paid for buildings that are not in flood zones.  So every year many home and business owners are surprised to suffer flood damage, and most of them don’t have insurance coverage.  The NFIP defines flood as covering two or more acres or two or more contiguous properties.  So it doesn’t have to be the classic picture of a bursting dam.

Homeowners Insurance generally doesn’t cover flood damage at all, or most other “ground water” damage.

To get flood coverage, go to an agent representing the NFIP. If your house or business is not in an active flood zone, flood insurance is not very expensive compared to the value insured.  If it is in a flood zone, it is expensive but your bank will require it.

For homes, insurance for back-up of sewers and drains could be less than $100.   It covers just what it says, water coming into the house through sewers and drains.  That could happen in a situation where there was no flood by the definition of the NFIP.

For either coverage, insurance is a lot cheaper than the potential loss.


For quotes stop by our main site:  For Flood quotes:  For Business quotes:

2 Responses

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  1. The local newspaper says that the flood maps are being re-drawn. What’s going to happen to my flood insurance premium here in Sussex County?


    February 19, 2010 at 4:05 pm

    • The impact of redrawing the flood maps, in many cases, will be to expand the flood zones, raising the cost of flood insurance for people who were not previously in a high hazard zone. I notice there are a lot of hearings in Sussex County about this, as there were in the New Jersey counties that touch the ocean.

      However, there is a rule about grandfathering existing ratings. If you have a policy in place before the effective date of the new map, and keep it in force continuously, you can continue at your old rating. That can save money.

      For more information, call us at 1-800-548-2329.


      February 19, 2010 at 4:37 pm

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