Flood Insurance

Flood Insurance

Did you know that homeowner’s or business insurance policies typically do NOT cover floods? This lack of coverage can prove to be disastrous to families and business owners as New England weather is harsh and unpredictable. In most cases, flood insurance is an additional policy and must be purchased separately.

Many property owners learn this devastating news after a flood has already occurred and has caused significant damage to their home.

Why do I need flood insurance?

Catastrophic weather events are unpredictable and occurring more often.  A large percentage of the damage associated with these events is flood-related and not covered by most property insurance policies.  Relying on your mortgage company to tell you whether you need flood insurance is a mistake that many property owners make.  You should become familiar with the flood zone your home or business is located in as well as the neighboring areas that could impact your property should a flooding event occur.  Flood waters are not going to avoid your property simply because the flood maps say you are in a lower risk area.   Consult with your agent to analyze the potential risk involved and the cost to insure against this risk.  If the potential for a flood is there, then the purchase of flood insurance will most likely prove to be more cost-effective if a flood were to occur.  Below you will find some facts to guide you through this decision.

Flood Facts:

• Floods are the most costly natural disaster.
• Floods are the most common natural disaster.
• 20% of all flood claims occur outside of a high-risk flood zone (Source: FEMA).
• Depending on your location and the terms of your property loan, Flood Insurance may be mandatory.

Do you live in a flood zone?

Check out the Rhode Island Floodplain Mapping Tool provided by The National Flood Insurance Program. This map identifies designated Special Flood Hazard Areas (SFHAs) which are typically in coastal areas. The map also identifies lower risk areas such as dwellings/building constructed near inland rivers, ponds, and wetlands.  Or, simply give your OceanPoint agent a call to review.

What are your options? 

In 1968, the US Congress established the National Flood Insurance Program (NFIP). This program provides homeowners, business owners, and renters throughout the country with insurance programs. OceanPoint Insurance is proud to represent several of the most reputable ‘write your own’ flood insurance companies in Rhode Island.

In addition to the NFIP, there are several Private Flood insurance markets available.  OceanPoint has access to many of these programs and can evaluate coverage and costs for your home or business.  Many of these markets offer coverage that is broader than that offered through the NFIP and at a reduced cost.

Start planning now; don’t be left underwater without the proper insurance!