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Flood Insurance

Flood Insurance and Official Flood Zones

A flood can cause thousands of dollars worth of property damage. That’s why some mortgage lenders require anyone living in a flood zone to have flood insurance. If you live in a flood zone, then you should learn a bit about flood insurance.

What is a Flood Zone?

A flood zone is an area designated by the Federal Emergency Management Agency (FEMA) as high risk for floods. FEMA provides maps for every geographic area that’s an official flood zone. Lenders, property owners, homeowners, and insurers can view these maps to see if a property is in a flood area. The zones are also ranked based on the severity of the floods.


The National Flood Insurance Program (NFIP) is administered by FEMA. And although FEMA is in charge of this program, insurers are allowed to sell flood insurance through the program. The fees for coverage are also determined by FEMA. Fees are largely based on the location of the property, and the severity level of the flood zone.

It’s worth noting that policies usually have a waiting period. In most cases, a policy will become active 30 days after purchase. This is why it’s important to get the insurance as soon as possible. If a flood occurs during your waiting period, you won’t get any compensation.

Coverage Options

Flood insurance provides compensation to help you repair your property following a flood. The flood must be a natural disaster that affects your entire area. Flooding that occurs only in your home, such as from bad plumbing, isn’t covered by flood insurance.

Generally, flood insurance covers the building and its foundation. Permanent parts of the home, such as electrical systems and cabinets, are covered as well.