Flood Insurance

Understand the Critical Insurance Coverage That May Provide Financial Protection Against Flood Risk

Many homeowners dread the idea of finding unwanted water in their home during or after a storm—and with good reason. Water in your home, even if it measures less than an inch, can quickly destroy electrical and plumbing systems, furnaces and water heaters, appliances, carpeting, the foundation and walls, staircases, furniture, electronics, and more. In addition, flooding has become a frequent and severe threat across Massachusetts due to increasing bouts of heavy rain, sleet, hail, and melting snow as well as an eroding coastline and rising sea levels.

While your standard home insurance policy generally includes coverage for many types of water damage, destruction of your home and its contents as a result of flooding is not one of them. A flood insurance policy, on the other hand, typically provides coverage for physical losses to your home’s structure and its contents when they are the direct result of a flood event.

Who needs Flood Insurance?

According to the Federal Emergency Management Agency (FEMA), 90% of all natural disasters in the United States involve flooding and it is by far the costliest weather threat to homes. Of course, properties that are close to a body of water, whether they sit along the shoreline or near a river or lake, are at the highest risk for flooding. If you buy one of these homes, your lender is almost always going to require you to have flood insurance.

However, oceanfront or lakeside properties are not the only homes at serious risk for a flood event. In fact, about 25% of flood insurance claims come from moderate- to low-risk flood areas. With sea levels on the rise and storm systems increasing in severity and frequency, many experts, including our team at Gilbert, believe that if you live anywhere it rains, there is a risk of flooding and it would be smart to consider purchasing flood insurance.

How do you get Flood Insurance?

The longest-standing and most common source for flood insurance is the National Flood Insurance Program (NFIP). However, the NFIP is not your only option. Today, many private flood insurance companies offer additional coverages that are not available through the NFIP, as well as significantly higher coverage limits and short to no waiting periods for the coverage to become effective.

Whether you’re buying flood insurance through the NFIP or the private insurance marketplace, there are a variety of reasons you’ll want to enlist the help of your insurance professional. First, these policies are not available direct to homeowners—you can only access them through an agent. More importantly, by working with local and knowledgeable professionals, like the Gilbert team, you can rely on our decades of experience and exceptional familiarity with the region to assist you in determining your individual property’s flood risk and navigating the flood policy application process. Whether you need help with a new or renewing policy, contact a Gilbert professional for a review of all flood insurance options and rates available to you.

How much does Flood Insurance cost?

Our goal is to get you the most favorable flood insurance rates for your current or new property. The best way for us to do that is to speak with you one-on-one about your home, which will help us uncover all the factors that may impact your flood insurance costs. Once we complete a thorough assessment of your property, we may suggest some of the following cost-lowering strategies:

• Get an Elevation Certificate (EC). An EC lists a building’s location, lowest point of elevation, flood zone, and other characteristics. While you are no longer required to get an EC in order to purchase flood coverage, it is possible that providing one may lower your insurance cost. However, getting a certificate can cost as much as $1,000, so speak with your Gilbert professional first to see if they would recommend getting one based on their knowledge of your community and individual property.
• Take over an existing flood insurance policy. If you’re about to buy a home, ask the existing residents if they already have a flood insurance policy as you may be able to take over an existing flood policy when purchasing a home in a flood zone. Since this policy is already in effect, it’s possible the premium may be lower than if you were to buy a new flood policy. Before you go this route though, discuss this option with your Gilbert professional, who can also estimate what your flood insurance cost might be when the policy renews.
• Lower your home’s flood risk. Taking steps to mitigate your home’s flood risk not only may better protect your property against flood damage but can also help reduce your insurance costs. Some of the most common mitigation strategies are elevating utilities or your entire property, installing flood openings on your lowest floor, and filling your basement. The Gilbert team can help determine if any of these might be a good strategy for your specific property and location.

As the risk of flooding continues to rise in our area, we believe every current and new homeowner should be considering the value of having a flood insurance policy, even if they’re not required to get one. Please call us to learn more about the flood insurance solutions that might be best for the home you have now or a property you’re interested in buying.