Flood losses generally are not automatically covered by your homeowner insurance policy. You need an Arizona flood insurance policy. There is a common misconception that homeowner’s insurance covers flood damages. If you lived in the midwest or south you would probably have no misunderstanding about flood coverage. Residents in those areas know and understand it is an optional and additional coverage through the National Flood Service.
Congress established the National Flood Insurance Program (NFIP) in 1968 as a way to provide protection to consumers. While your agent can write a flood policy on your behalf, all flood policies are written through the NFIP.
The following statistics are provided by F.E.M.A. We can provide a quote through the National Flood Service.
Your home has a 26% chance of being damaged by a flood during the course of a 30-year mortgage, compared to a 9% chance of fire. Those numbers may be alot less for Arizona residents but it all depends where you live. Residents in some areas of the valley are located in flood zones. Every monsoon season it seems the news carriers stories about someone who tries to drive through a flooded area and gets stuck. They often need professional help to get out. Or there are stories about drownings.
About 25% of all flood claims are for Arizona flood insurance policies in low- to moderate-risk communities. Since 1978, over $31 billion for flood insurance claims and related costs have been paid.
Over 5 million people currently hold flood insurance policies in more than 20,000 communities across the U.S. If you do not live in a flood zone you may not be required to purchase flood insurance. If your home is paid for and you do not have a mortgage you can may also elect to not carry the coverage, though we advise you to seek legal counsel before electing to not carry flood insurance. However, if you live in a flood zone it is highly recommended, and maybe even required, you buy the protection. You cannot wait until your home is in jeopardy before buying coverage.
A “flood” as described by the NFIP is simply â€œan excess of water on land that is normally dry. Arizona flood insurance is what you to cover your home and property.
You don’t have to live near a river or ocean to be at risk for a flood. The most common type flood occurs from a flash flood, which can strike anywhere at any time when a large volume of rain falls within a short time. Even a couple inches of rain can cause your home to suffer flood damage.
A standard flood policy will cover structural damage, furnace, water heater and air conditioner, flood debris clean up, and floor surfaces. You can usually buy added coverage for furniture and other items. You usually do not need as much coverage for flood as you do for fire. A fire will level your home. It is likely that a flood will cause substantial damage but not reduce your home to rubble.
If you live in Arizona in an area considered a high-risk area, federal law requires you to purchase Arizona flood insurance. Typically, your mortgage company will inform you during the closing process or your real estate agent during the purchase process if your home is in a flood zone.
A homeowner can cover their home for up to $250,000 and contents for $100,000. A renter can cover their belongings up to $100,000.