Criteria for Flood Damage Insurance

Homeowners insurance covers liabilities against various disasters within the home.  Earthquakes and floods are not covered because of the severity of the damages and are excluded from homeowner’s private insurance.  Flood insurance can be purchased through the United States Government in case of flooding. 

Special Flood Hazard Areas:

The National Flood Insurance Program requires the house to be in a special flood hazard area identified by FEMA (Federal Emergency Management Agency).  There are several ways that FEMA analyzes flood areas which include studying long-term effects of the amount of rain, river flow and storm currents.  Historical, geological and meteorological data determine the areas that are at risk for flooding. National flood insurance is only available to those that qualify and are updated regularly to include other hazardous areas.

Community Ordinances:

If a community is located in a Special Flood Hazard Area there are ordinances that need to adhere to in order to receive flood insurance for a house.  Building new houses are most affected and require a special ordinance.  Materials that are flood-resistant and built above the base line are typically used in order to eliminate the risk of damages.   Communities must follow these ordinances or flood insurance is cancelled or denied. 

Minimum Coverage:

Certain standards must be met when purchasing individual flood insurance.  When buying flood insurance it must meet the lower of two amounts which are the amount of money that it takes to compensate the owner if a replacement is needed for damages or the maximum amount of flood insurance that is attainable in the area.  The flood insurance cost is more depending on the size of the house.