Donald C. Reutemann CFP®, RPA

(518) 688-2223

Insurance Read Time: 2 min

Protecting Your Home Against Flood Loss

In 2019, the average flood claim payout from the National Flood Insurance Program was $52,000.1

The financial loss that comes with flooding can be devastating. Yet, many Americans are not protected against flood damages, primarily because flooding is not covered under a standard homeowners policy.2

Low vs. High Risk

Even if you are in a moderate-to-low-risk area—homes not residing within mapped high-risk flood plains—you could suffer flooding at some point. In fact, moderate-to-low-risk areas account for nearly 25% of all National Flood Insurance Program insurance claims and one-third of federal disaster assistance for flooding.1

To protect yourself from the financial risks of flooding, you can consider purchasing insurance through the National Flood Insurance Program, which you can obtain through a local insurance agent. However, to be eligible, you will need to live in a community that participates in the program.3

Coverage Choices

If you live in a moderate-to-low-risk area, you may qualify for coverage at a preferred rate, with building and contents coverage for one low price.

If you live in a high-risk area, the National Flood Insurance Program offers separate coverage for buildings and contents.

The cost of flood insurance depends on a number of factors, including the age of your home, the number of floors and the location of contents, your flood risk, and the deductible and level of coverage you choose, among other things.

1. FEMA.gov, 2022. Most recent figure available.

2. Several factors will affect the cost of flood insurance, including the age of your home, number of floors, and the location of contents. You should consider the amount of your deductible and level of coverage before purchasing a flood insurance policy.

3. FEMA.gov, 2022

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