An Introduction Flood Insurance

You may not associate your Dallas, TX home with flooding, Eichelmann Insurance Agency wants you to understand you don’t have to live on the coast to need flood insurance. For example, thunderstorms settle over the area, inundating it with heavy rains. Your basement floods. Your home insurance does not cover that flood damage. Flood insurance does.

The National Flood Insurance Program

The federal government instituted the National Flood Insurance Program (NFIP) to help reduce the financial impact of flooding. It provides affordable flood insurance to homeowners and business living in communities that adopt and enforce floodplain management regulations.

NFIP maps US communities, identifying their floodplains and areas at risk for floods. It bases premiums on these maps and the structure’s construction features. A homeowner can obtain lower premiums, for example, by raising their home’s lowest story to above the 100-year flood level. Homes raised on stilts or pillars are a common sight on the US East and Gulf coasts.

Floods Happen Everywhere

Floods incur expensive damage and happen frequently. According to the Federal Emergency Management Agency, a flood is the most common natural disaster in the US. It also causes the most financial damage.

Floods occur in every state and a home or business doesn’t need to lie in a high-risk flood zone to experience a flood. In more than 20 percent of the flood claims filed, the flood occurred outside the high-risk area.

Another reason to obtain flood insurance is that a flood’s occurrence doesn’t mean a disaster declaration will follow. A Presidential Disaster Declaration opens the door to federal aid, but flood insurance pays for the damage incurred to your home or business regardless of a disaster declaration.

Although you may not associate your Dallas, TX home with flooding, Eichelmann Insurance Agency knows floods happen everywhere. Call us today to insure your home against a flood. You have to buy it if your home lies within a high-risk area and you carry a mortgage, but you should obtain a policy regardless because floods do happen.