USA - Why You Should Consider Flood Insurance, Even if You Don't Live in a High-Risk Area
Flood insurance is not required for homeowners unless they live in a high-risk flood zone. However, the majority of homeowners who experienced flooding in 2020 did not live in flood zones and were not covered under their homeowners insurance.
According to FEMA, 30% of all flood damage claims happens in low to moderate-risk zones, where flood insurance is not required.
"Flooding is one of the most common and costly natural disasters in the US, and given we are in the midst of an above-average hurricane season, consumers need to ensure that they will not be left exposed if their homes are hit hard by a storm," said Ralph Blust, CEO of the National Flood Services. NFS administers flood insurance on behalf of FEMA and the National Flood Insurance Program (NFIP).
Blust told Insider many homeowners believe they are prepared for a flood, but the reality is that only 12% actually have flood coverage. He said homeowners need to understand how, or if, flood damage is covered under their current insurance policies, especially if they are in a hurricane area.
What is flood insurance?
Flood insurance is an addition to your homeowners insurance policy that can cover flood-related damage. A flood is defined as surface water entering the inside of your home structure through existing openings that are above ground level.