Understanding Flood Insurance: A Comprehensive Guide for Homeowners

Devastating floods in New York have highlighted the importance of flood insurance, with only four property owners in the affected town having active policies. Flood insurance protects against damage caused by flooding and is not typically included in homeowners insurance. In the US, the Federal Emergency Management Agency (FEMA) provides flood insurance through the National Flood Insurance Program (NFIP), with coverage capped at $250,000 for building damage and $100,000 for contents. Private flood insurance options offer more coverage and higher limits. While FEMA flood insurance is available to all property owners, those in higher risk areas may be required to purchase a plan. Inland flooding is just as frequent as coastal flooding, and homeowners insurance typically excludes flood coverage. The decision to get flood insurance should be based on risk assessment, as flooding can occur anywhere and for various reasons.