How do you know if you need flood insurance?

How do you know if you need flood insurance?

Whether you live inside or outside of a high-risk flood area, if you own property, you should consider purchasing flood insurance for the protection and peace of mind it brings. Let TAS Insurance Agency, serving Phillipsburg, NJ, help you understand when your property requires flood insurance.

The Federal Emergency Management Agency (FEMA) creates flood maps that rate the flood risk of an area. All properties located within this area get designated with that risk rating. Any property within a high-risk flood area must obtain flood insurance as long as it has a mortgage outstanding. That’s because the government, via the Federal Deposit Insurance Corporation (FDIC), insures all mortgages. The government doesn’t want to lose its money, so it requires flood insurance via the National Flood Insurance Program (NFIP).

The government does not get your insurance premiums though. NFIP merely approves local insurance carriers who meet quality checks to offer you flood insurance.

You can easily find out if you need to buy flood insurance. If you already purchased your home, locate your closing paperwork. Find the section in the documents titled "Natural Hazards Disclosures." If there is a disclosure listed that classifies your property as Zone A or Zone B, you purchased property at high risk for flooding.

If you have yet to purchase property and you’re just house hunting, you can find out without the purchase information. You can look at a FEMA map to know if you will need insurance. You visit your post office or county assessor’s office to look at a map. Simply check the property address on the map. If it lies in Zone A or Zone B, it requires flood insurance.

Contact TAS Insurance Agency serving Phillipsburg, NJ, to learn more about flood insurance and what options you have. Ask us about contents only policies for renters, if you did not buy your property.

What does flood insurance cover

Floods cause devastation across the US every year, especially in the spring. It has gotten more common in recent years, which places additional people in danger. Cities and towns that normally haven’t been in danger of flooding are no longer safe. Everyone who lives in an area that might be in danger of flooding should consider having flood insurance. At TAS Insurance Agency in Phillipsburg, NJ, we are locally owned and operated and provide our customers with multiple carriers to choose from. 

The majority of flood insurance is purchase through the NFIP and managed by FEMA. It is offered to eligible people through a network of approved carriers. It doesn’t matter which carrier you chose. The government determines the rates, so choose the carrier you prefer and know provides great service. Flood insurance through NFIP is available to those who live in one of the 23,000 communities who participate. Other options are available for those who do not live in one of the participating communities. 

NFIP offers two separate policies. One is for the property, and one is for the contents. You can purchase just one, or you can purchase both. The choice is yours. The amount the policy covers is limited, and if you need more coverage than they can provide, you should look into the other available options. Typically, property coverage has a $250,000 limit and content has $100,000. These are the maximum amounts the policy will pay no matter what the actual replacement cost is. Both policies come with a deductible. 

Property coverage protects the physical building and the main systems in the home, such as electric, plumbing, and HVAC. It also covers any built-in content include major appliances. 

Contents insurance covers furniture, clothing, household items, washer and dryer, window cooling units, and electronics. 

Contact TAS Insurance Agency in Phillipsburg, NJ, when you have flood insurance needs.