Flood insurance is available to recover losses & rebuild your home & life faster. Read an up-to-date guide on flood insurance for USA homeowners in 2021.
Water damage from floods destroys finances and property. When the damage also destroys family heirlooms/memorabilia, even certain memories are washed away in the storm. Flood insurance is available to help recover losses & rebuild your home/life faster. Many people believe protection against flood-related damages is unavailable for homes located in high-risk flood zones. This is not the case, however, and as long as your community participates in the National Flood Insurance Program (NFIP) a flood insurance policy is available for you.
Top providers for flood insurance are on the market now. Average costs & coverages vary per state & plan. Read ahead for an up-to-date guide on flood insurance for U.S. homeowners in 2021.
Flood Insurance 101
Flood insurance is a valuable purchase because it protects your home from the most historically destructive type of damaging force in the country. Flood insurance is also a necessary purchase because damage caused by flooding is not covered in standard rental or homeowner’s policies. The U.S. federal government facilitates most flood insurance policy programs, although policies via private insurance companies are purchasable if the providing company is contracted with the Federal Emergency Management Agency (FEMA).
Flood insurance is available in low & high-risk areas provided the community is a participant in the NFIP. Participation in this federally facilitated program requires local-level governments to create satisfactory flood management plans in compliance with NFIP laws/regulations. To learn if your community participate in the NFIP please consult the FEMA Community Status Book or contact your applicable municipal services department directly.
Standard NFIP flood insurance policies are available for a maximum coverage of $250,000 (home structure) and an additional maximum $100,000 for contents lost inside your home. Structure and contents insurance are each sold as separate policies. Physical buildings are protected up to their actual replacement costs. Personal contents/property are covered on a per-item actual cash value basis. Basic flood insurance covers:
- Losses/damages caused directly by flood waters.
- Losses/damages caused by flood-related erosion.
- Currents/waves surpassing expected cyclical levels.
- Flash floods.
- Water damages in tandem w/severe storms & excessive tide surge.
- Other applicable adverse scenarios resulting in floods.
Automobiles are not automatically included in many flood insurance policies. Protecting your vehicle from flood damage is generally a coverage provided by comprehensive automobile insurance policies, which are also considered optional policy additions. The NFIP does provide commercial flood insurance policies for a maximum of $500,000 each for building structure and its contents respectively. Excess coverage options are available for commercial flood insurance policies for additional premium costs as well.
Top Flood Insurance Providers 2021
Researching the best flood insurance for your home in 2021 is easier to do than ever before thanks to the multitude of online resources available today. Important considerations involve premium prices, coverage depth (and limitations) and quality/speed of customer service. Customer service also includes how quickly claims & payouts are processed, which is a common primary concern to most homeowners.
Budgets are important to most U.S. families in modern times. Policies still need to be comprehensive about what they cover to have value, however, regardless of price. Better Flood Insurance is one of the most affordable coverages available, offering private policies at significantly discounted rates in comparison to common NFIP-backed coverage. USAA offers flood insurance coverage for active/veteran U.S. military members and their families. USAA has been in business since 1922 and has an excellent rating among insurance experts for customer service and quality of products.
GEICO and Allstate are widely considered to be the best two flood insurance policy providers on the market today. Allstate received A- through A+ ratings from Standard & Poor’s and the Better Business Bureau (BBB) respectively. GEICO (Government Employees Insurance Company) is perhaps the most popular insurance company among U.S. consumers today, due in no small part to its high customer satisfaction ratings for its flood insurance policies. Additional top flood insurance providers for 2021 include:
- Liberty Mutual (best for managing policies online).
- Assurant (best excess policies).
- Private Market Flood (best commercial).
- Neptune (best comprehensive).
- Farmers Insurance (best overall customer service).
- FloodSimple (customer service runner-up).
Benefits of Having Flood Insurance
If you are unsure of your need to purchase flood insurance, please take a moment to consider factual statistics about flood damage in the U.S. today and the many benefits flood coverage policies offer to protect against proven dangers. Ninety percent of all USA-occurring natural disasters include flooding, which results in damage to low/medium-risk areas. Twenty-percent of insurance claims filed due to flood damage are also submitted in low & medium-risk areas. The facts are, regardless of the risk-level of the area in which you live, inland flooding and flash floods can/do strike, sometimes without warning.
If your home is damaged in a flood and you do not have adequate coverage, rebuilding your life is reliant upon disaster relief loans or your savings account. Replenishing your savings account takes time and extra work. Emergency loans require repayment. Flood insurance protects you from disastrous financial losses at a fraction of the expense
Your home is likely your most valuable asset. Flood insurance protects your home and loved ones, while simultaneously increasing the value of your property. Flood insurance is also simple, fast and convenient to purchase in 2021. Finally, purchasing flood insurance provides you with peace-of-mind, knowing your home and possessions have an extra layer of protection if the most common type of natural disaster in the country strikes your area.
Flood Insurance - Risks vs. Rewards
Purchasing any type of insurance policy involves a degree of financial risk. Insurance provides protection against potential threats, which means you are spending money to guard against an event with the chance it never occurs. Another perspective involves the collective value of your home, property, possessions and (most importantly) family members/pets outweighing the cost of additional premium costs. Floods strike almost anywhere in the country with little or no warning. Is not purchasing flood insurance worth the risk of losing everything you care about and own? For most homeowners the rewards of purchasing flood insurance are significantly greater than the financial risks of paying slightly higher premiums every year.