The first bit of information you need to be aware of is that your homeowners insurance does not cover damage from flooding.  That’s right, should your home suffer flood damage, it will not be covered under your homeowners policy!

Many believe that flood insurance is only necessary or available if they live in a flood zone. In actuality, you can purchase flood insurance whether your home is situated in a “flood zone” or not.  Even if your home is not located near a body of water you could experience flash flooding or damage from water soaked soil in a heavy rain season.  In fact, 25% of all flood claims occur in low to moderate flood areas.  If you are financing a home that is located in a Special Flood Hazard Area (SFHA), the lender will require that you carry flood insurance on your property.

Flood insurance does not become effective until 30 days from the initial purchase of the policy.  The only exception to the 30 day rule is when a home is being purchased or refinanced and the lender requires flood insurance as a condition of the loan.  The 30 day waiting period is established to stop last minute purchases that would create excessive adverse selection.

The National Flood Insurance Program (NFIP), a division of FEMA, oversees the flood insurance program.  Flood Insurance is available in all communities that participate in the NFIP. To get the facts on flood insurance call your F. A. Peabody Company agent.