MYTH: Homeowners’ insurance policies cover flooding.įACT: Unfortunately, many homeowners do not find out until it is too late that their homeowner’s policy does not cover flooding. In addition, the amount of insurance coverage cannot be increased during a loss in progress. The policy does not cover a “loss in progress” defined by the NFIP as a loss occurring as of 12:01 a.m. If the initial purchase of flood insurance is made during the one-year period following the adoption of a revised Flood Insurance Rate Map for a community, the waiting period is only one day.In those cases, there is no waiting period. If the initial purchase of flood insurance is in connection with the making, increasing, extending or renewing of a loan.There is a 30-day waiting period after you’ve paid the premium before the policy is effective, with the following exceptions: MYTH: You can’t buy flood insurance immediately before or during a flood.įACT: You can purchase flood coverage at any time. Under the National Flood Insurance Act, lenders must require borrowers whose property is within an SFHA to purchase flood insurance as a condition of receiving a federally backed loan.įlood insurance on homes and businesses located above or outside a floodplain is very affordable insurance for homes in SFHAs may cost substantially more. The NFIP was created in 1968 to provide flood insurance to people who live in areas with the greatest risk of flooding, called Special Flood Hazard Areas (SFHAs), also known as the 100-year floodplain, or the regulatory floodplain. MYTH: You can’t buy flood insurance if you are located in a high-risk flood area.įACT: You can buy federal flood insurance no matter where you live if your community participates in the NFIP. Here are some of the most common myths and facts about flood insurance and the NFIP. Yet, many property owners often have misconceptions about flood insurance, such as whether they can get it, when they can buy it, and how much it costs, etc. Property owners who live in communities participating in the National Flood Insurance Program (NFIP) can purchase affordable protection to insure against flood losses. Floods are the most common and costly natural disasters in the United States.

Nfip flood insurance