Buyers may purchase flood insurance through an insurance agent, not directly from the National Flood Insurance Program (NFIP).
Homes and businesses in high-risk flood areas with mortgages from federally regulated or insured lenders are required to have flood insurance. While flood insurance is not federally required if you live in a moderate- to low-risk flood area, your lender may still require you to have insurance.
Rates do not differ from company to company or agent to agent. The rates depend on several factors, including the date and type of construction of your home, along with your area’s level of risk. Most premiums include a Federal Policy Fee, a fee to help defray any increased cost of compliance with higher standards after a flood, and a Homeowner Flood Insurance Affordability Act of 2014 Surcharge. If your community participates in the Community Rating System (CRS), you may qualify for an insurance premium discount. The discount is calculated based on the community’s efforts to reduce the risk of flooding. The higher the elevation above the base flood elevation, the lower the premium will be for the property.
A property’s location on the NFIP flood map may determine whether a lender requires a flood policy.
Buyers may purchase a flood policy, regardless of where their home is located, since flood damage can also occur in moderate and low-risk zones.
The contents of a home are not typically covered by flood insurance. Speak to your insurance agent to make sure you have the coverage you want.
In most cases, there is a 30-day waiting period from the date of purchase until a policy goes into effect. If you purchase flood insurance in connection with making, increasing, extending, or renewing your mortgage loan, there is no waiting period.
In some instances, a Buyer will be able to assume the Seller’s flood insurance policy.
You must pay for the full year’s premium. The NFIP accepts check and credit card payments (American Express, Discover, MasterCard, or Visa).