Flood Insurance

TW Morgan Insurance Services is partnered with FloodSmart.Gov and other Private Flood insurance companies to protect your home or business.

Just a few inches of water from a flood can cause tens of thousands of dollars in damage. From 2008 to 2012, the average residential flood claim amounted to more than $30,000. Flood insurance is the best way to protect yourself from devastating financial loss.

Flood insurance is available to homeowners, renters, condo owners/renters, and commercial owners/renters. Costs vary depending on how much insurance is purchased, what it covers and the property's flood risk.

All policy forms provide coverage for buildings and contents. However, you might want to discuss insuring personal property with our flood agent, since contents coverage is optional. Typically, there's a 30-day waiting period from date of purchase before your policy goes into effect. The exception to the 30 day wait is if you purchase a new home and the lender requires flood insurance, if purchase at the time of escrow, the 30 day waiting period is waived. That means now is the best time to buy flood insurance.

Here are some thing to consider about Flood Insurance. To learn more about Flood insurance, visit www.FloodSmart.Gov

A relative of mine, who lives in Longmont, Colorado, was recently a victim of a major flood. She lives in an area that is in a 500 year flood zone. This would typically be a very low risk zone, and most folks in that area may not have considered purchasing flood insurance. These photos are from the September 2013 summer flood. They received 8 inches of rain in a 24 hour period.

Moderate-To-Low Risk

Most homeowners in a moderate-to-low risk area are eligible for coverage at a preferred rate. Preferred Risk Policy premiums are the lowest premiums available through the NFIP, offering building and contents coverage for one low price. In fact, building and contents coverage starts at just $129 per year. If you don't qualify for a Preferred Risk Policy, a standard rated policy is still available. Even though flood insurance isn't federally required, more than 20% of all NFIP flood claims occur in moderate-to-low risk areas.

High Risk Areas

If you live in a high-risk area, a standard rated policy is the only option for you. It offers separate building and contents coverage.

The Dwelling Form provides insurance for buildings with one to four units, including single-family condominium units and townhouses. The General Property Form provides insurance for other residential and commercial buildings. Both forms provide flood insurance on contents, if you have purchased this optional coverage.

Flood insurance premiums are calculated based on factors such as:

• Year of building construction
• Building occupancy
• Number of floors
• The location of its contents
• Its flood risk (i.e. its flood zone)
• The location of the lowest floor in relation to the elevation requirement on the flood map (in newer buildings only)
• The deductible you choose and the amount of building and contents coverage

If your home is in a high-risk flood area and you have obtained a mortgage through a federally regulated or insured lender, you are required to purchase a flood insurance policy.

Condo Owner/Renter

If you rent or own your condominium unit, it is a good idea to purchase both building (if you own the unit) and contents coverage. If you are a tenant, contents-only coverage is available. The policy premium is based on several factors, including the flood risk of the building that you occupy.

Moderate-To-Low Risk

Most condo owners or renters in moderate-to-low risk areas are eligible for coverage at a preferred rate. Preferred Risk Policy premiums are the lowest premiums available through the NFIP, offering building and contents coverage for one low price. In fact, residential premiums start as low as $55 per year for contents-only coverage.

If you don't qualify for a Preferred Risk Policy, a standard-rated policy is still available. Even though flood insurance isn't federally required, anyone can be financially vulnerable to floods. People outside of high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding. When it's available, disaster assistance is typically a loan you must repay with interest.

High-Risk

If you live in a high-risk area, a standard-rated policy is the only option for you. It offers separate building and contents coverage.

The Residential Condominium Building Association Policy (RCBAP)

This form of the Standard Flood Insurance Policy insures residential condominium associations and thus the building in which your unit is located.

Flood insurance premiums are calculated based on factors such as:

• Year of building construction
• Building occupancy
• Number of floors
• Number of units
• The location of its contents
• Its flood risk (i.e. its flood zone)
• The location of the lowest floor in relation to the elevation requirement on the flood map (in newer buildings only)
• The deductible you choose and the amount of building and contents coverage

If you own your unit and it is located in a high-risk flood area, you will be required to purchase flood insurance if your lender is federally regulated or insured.

Renter

If you are a tenant, it is wise to insure your contents. The policy premium is based on several factors, including the flood risk of the building that you occupy.

Moderate-To-Low Risk

Most renters in moderate-to-low risk areas are eligible for coverage at a preferred rate. Preferred Risk Policy premiums are the lowest premiums available through the NFIP, offering building and contents coverage for one low price. In fact, residential premiums start as low as $55 per year for contents-only coverage. ** As of Jan. 1, 2013

If you don't qualify for a Preferred Risk Policy, a standard-rated policy is still available. Even though flood insurance isn't federally required, anyone can be financially vulnerable to floods. People outside of high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding. When it's available, disaster assistance is typically a loan you must repay with interest.

High-Risk

If you live in a high-risk area, a standard-rated policy is the only option for you. It offers separate building and contents coverage.

Flood insurance premiums are calculated based on factors such as:

• Year of building construction
• Building occupancy
• Number of floors
• The location of its contents
• Its flood risk (i.e. its flood zone)
• The location of the lowest floor in relation to the elevation requirement on the flood map (in newer buildings only)
• The deductible you choose and the amount of coverage

What's Covered

Flood insurance policies cover physical damage to your property and possessions. You can use the following list as a general guide to what is and isn't covered or simply refer to the Summary of Coverage (PDF 108K) to help you better understand your policy and coverage.

Building Property

• The insured building and its foundation
• Electrical and plumbing systems
• Central air conditioning equipment, furnaces and water heaters
• Refrigerators, cooking stoves and built-in appliances such as dishwashers
• Permanently installed carpeting over unfinished flooring
• Permanently installed paneling, wallboard, bookcases and cabinets
• Window blinds
• Detached garages (up to 10 percent of building property coverage); detached buildings (other than garages) require a separate building property policy
• Debris removal

Personal Contents Property

• Personal belongings, such as clothing, furniture and electronic equipment
• Curtains
• Portable and window air conditioners
• Portable microwave ovens and portable dishwashers
• Carpets that are not included in building coverage
• Clothing washers and dryers
• Food freezers and the food in them
• Certain valuable items such as original artwork and furs (up to $2,500)

What's Not Covered

• Damage caused by moisture, mildew or mold that could have been avoided by the property owner

• Currency, precious metals and valuable papers such as stock certificates

• Property and belongings outside of an insured building such as trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs and swimming pools

• Living expenses such as temporary housing

• Financial losses caused by business interruption or loss of use of insured property

• Most self-propelled vehicles such as cars, including their parts (see Section IV.5 in your policy)

Flood Insurance For Basements And Areas Below The Lowest Elevated Floor

Coverage is limited in basements regardless of zone or date of construction. It's also limited in areas below the lowest elevated floor, depending on the flood zone and date of construction. These areas include:

• Basements
• Crawl spaces under an elevated building
• Enclosed areas beneath buildings elevated on full-story foundation walls that are sometimes referred to as "walkout basements"
• Enclosed areas under other types of elevated buildings