Floods can devastate the physical structure of your home and other property, causing significant financial losses. Like any other financial investment, your home should be protected by adequate insurance, but standard homeowners and renters insurance policies generally do not include flood coverage. You may need additional flood insurance if you live in a flood-prone area. 

What Is Flood Insurance? 

The Federal Emergency Management Agency (FEMA) is in charge of the National Flood Insurance Program (NFIP), which can provide coverage for homeowners, renters and businesses to help rebuild structures and replace damaged belongings. However, certain limitations of NFIP policies, such as that they may cover only the actual cash value of possessions rather than the full replacement cost, may make private market flood insurance appealing for some homeowners.  

In general, private market flood insurance plans can be classified as one of the following types: 

• First dollar—This type of policy, also known as primary flood insurance, functions similarly to the NFIP plans, albeit while generally offering higher levels of coverage.

• Excess—This coverage can augment flood insurance for homeowners who may need additional financial protection or those who may not live in communities that participate in the NFIP. Excess flood insurance can generally be added to either private market or NFIP policies.

Contact our agents for more information about NFIP or private flood insurance. 

Who Needs Flood Insurance? 

Coverage for floods is a critical component of an adequate insurance portfolio for anyone in high-risk flood areas. Mortgage lenders may require this type of coverage for homeowners in such areas. Those not required to purchase a flood insurance policy or who live in low- and moderate-risk areas should still strongly consider this type of coverage. Without flood insurance, you may incur catastrophic out-of-pocket costs to repair or replace your property. 

What Does Flood Insurance Cover? 

Flood insurance policies cast a wide safety net for your physical property. In most cases, if a flood impacts your home, your policy may be able to provide financial assistance in repairing or replacing the following: 

• Structures
• Foundations
• Electrical systems
• Plumbing
• Central air and heating systems
• Attached fixtures (e.g., bookcases, cabinets, paneling)
• Garages

• Contents
• Clothing
• Furniture
• Electronics
• Portable appliances
• Food
• Valuables (e.g., art)

How Much Does Flood Insurance Cost? 

Like many types of insurance, the cost of flood coverage may vary significantly depending on your circumstances. To provide you with an accurate quote for coverage, insurance companies may consider the following factors: 

• Flood risk levels in your area

• Specific location details (e.g., elevation

• Age of home

• Construction details (e.g., building materials)

• Policy details (e.g., types of coverage, policy limits, deductibles)

Get the Right Coverage? 

It may not always require a hurricane or other extreme weather event to cause significant flood damage. Even a small amount of water can wreak havoc on essential elements of your home and lead to significant losses. By acquiring and maintaining a flood insurance policy, you can access critical financial resources to offset such costs. 

We’re here to help. At McKinney Insurance Services, our agents have over 40 years of experience helping homeowners in Asheville and throughout western North Carolina understand their coverage needs and build optimal policies. Contact us today to get started.