Do I need flood insurance for my home?
Standard homeowners and renters insurance does not cover flood damage. To protect your home, be sure to understand the risk of flooding and what your insurance options are. You will need flood insurance if you live in a designated flood zone. But flooding can also occur in inland areas and away from major rivers. Flood insurance is available for renters as well as homeowners, but a special policy is required as flood insurance—like earthquake insurance—is not part of standard homeowners coverage. Flood policies are provided by the federal government and some private insurers. The federal government provides flood insurance through the National Flood Insurance Program (NFIP), run by the Federal Emergency Management Agency (FEMA). While they are underwritten by the government, NFIP policies are generally sold through private insurance agents. In some areas, primary flood insurance may be available through private insurers. However, the NFIP provides only actual cash value coverage for your possessions. That means you'll get the current value of your possessions, which may be considerably less than the cost you'll incur to replace them, especially if they are older and have depreciated in value.