This article ran originally last year.  I thought that given the number of water claims we are seeing this year, it might be a good time to run it again.  By the way, you may be getting a notice in the mail from your mortgage company telling you that you need flood insurance.  FEMA has redrawn the maps and there are many significant changes to the flood zones.  If you think you need it, it would be smart to buy it before someone tells you that you need it.  Often, existing flood insurance policyholders are “grandfathered in” with their original policy ratings based on the original flood zone determination.  The difference in rating could save you thousands of dollars.  To see Fairfax County’s flood map click HERE.

This Spring and Summer we have been overwhelmed with the number of calls from homeowners who are experiencing damage from rising water.  Unfortunately, homeowners insurance does not cover floods.  First of all, it is important to know what a flood is.  Well, here is a definition from the government:

“Flooding is a result of heavy or continuous rainfall exceeding the absorptive capacity of soil and the flow capacity of rivers, streams, and coastal areas. This causes a watercourse to overflow its banks onto adjacent lands.”

If more than one property or more than 1 acre is impacted by the water you have an insurable event.  This means that a flood policy would respond if one was available.  Now, what are your chances of being affected by a flood?  Well, that is a little harder to answer.  However, you can check out NOAA’s weather map  http://www.weather.gov/ahps/ and you can see where there are warnings and watches in place.  Or you can go to the FEMA web site  http://www.fema.gov/ and search “flood” to find lots of good information on the subject.  The government has done extensive mapping of flood plains however, those maps are continuously updated.  Based on changes in the topographical lay of the land due to construction or natural changes, the flow of water in streams and creeks near your home may change over time.  This could mean that your home is in a new (undetermined) flood plain.  You may learn of this change when the water begins to rise and then it is too late.

Another big exposure that homeowners have is the changes they make to the grading near their home during the course of landscaping.  A new garden or tree may divert water toward the house causing it to come in under doors or through windows.   A flood policy may or may not cover you in these cases.  It really depends on whether your flood meets the definition of a flood in the policy.  If more than one adjacent home is impacted chances are it will be covered.

So, is flood insurance worth the money?  The simple answer is YES.  Flood damage is devastating and federal and state aid is not going to restore you to the condition you were in prior to the loss.  Even flood insurance is not a guarantee of complete indemnification.  But, I would much rather have one following a loss than to be dependent on the state for a hand out.  If you are not in a designated flood plain, the cost is about $400 per year.  If you are in a high risk flood plain, the cost could be much higher.

If it is determined that you are in a flood plain and your insurance company has told you that you need to pay thousands of extra dollars per year for flood insurance, there is still something you can do to help with the premiums.  Contact a surveyor and hire them to do a complete elevation survey of your property.  It may be that the risk for your individual home or property is less than what was determined by FEMA.  If it is determined that your home is elevated enough to make it less likely to be flooded then you can save on your flood insurance.  If you disagree with the flood determination from FEMA you can dispute the maps.  However, you will need to provide evidence that the maps are incorrect concerning your home.  To do this, you will need a good surveyor and it will probably cost you about $1500.

Insurance premiums generally reflect the risk of loss that they are paid to protect against.  So, if you are being asked to pay a very high premium for flood insurance it is because your risk of loss is also very high.  This should be a warning to you and you should start thinking about a worst case scenario and plan accordingly.

Here is a link to one homeowners experience with flood insurance following Hurricane Katrina:  http://www.floodsmart.gov/floodsmart/pages/videos/levee_failure.jsp