In the wake of Superstorm Sandy on the East Coast, people are learning that the standard Homeowner’s policy does not cover damage caused by floods or hurricanes. Here in California, we do not have separate Hurricane or Wind policies, that is covered on a standard Homeowner’s policy (though you may have a separate Wind deductible, so be  sure to check your policy!) California Homeowner’s policies do NOT cover Earthquake or Flood damage (and a number of other things, again, read your policy!!).

Protect Yourself With Flood Insurance – How can I protect myself from Flood damage?

Flood insurance works a bit differently, since it is actually regulated by the Government, through the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP). FEMA has created, and continually updates, Flood Maps that zone all areas into Flood Zones that designate the risk of flood to that area. If your property lands in one of these flood zones you are eligible to get Flood Insurance, and may even be required to by a Mortgage Company that has an interest in the property as well.

Protect Yourself With Flood Insurance – If Flood insurance is through the NFIP, does it matter what Company or Broker I choose?

Typically, No. Even though the policy would be through the NFIP, different companies have been authorized as “Write Your Own” companies and could then qualify you for a very minimal discount on your other policies. The benefit comes from having a single point of contact for service on all your policies.

Protect Yourself With Flood Insurance – The Flood Map was redrawn and now my Flood Insurance is VERY expensive! What can I do?

There are actually a few things you can do to help save money on Flood Insurance premium. The two best options you have are to utilize a Grandfathered Map Zone, or utilize the new Preferred Risk Policy Eligibility Extension program.

To Grandfather a previous Flood Map Zone, you need to have obtained Flood Insurance prior to the effective date of the new Zoning. If you know the Flood Map is going to change, you should try and obtain Flood Insurance prior to the change, and then after it changes you can use the Grandfathered zone.

The PRP Extension program was designed by FEMA and the NFIP to help ease the transition of new flood zone maps changing from low to high risk zone. Since the maps had not been updated in over 10 years, it was coming as quite a shock to Homeowner’s when they suddenly were required to obtain Flood insurance by their lender for over $1,500 a year. There are specific eligibility criteria you need to meet to be able to be able to utilize this program, but it could save you over $1,000 on your annual premium!

Protect Yourself With Flood Insurance – How can I obtain Flood Insurance?

You can call and talk with an Independent Agent at 925.297.4202 to discuss your property and see if you’re eligible for any money-saving programs for Flood Insurance. You can also fill out the form to the right and have an agent contact you.