Insurance Advisor at Oliver L.E. Soden Agency, Inc

5 Things to Know About Flood Insurance in NJ

Just this morning, a State of Emergency was declared for 11 northeastern counties in North Carolina because of Tropical Storm Julia. The midwestern states are also seeing heavy rains rip through today, with flooding along the Mississippi River. And, of course, the Northeastern states are no stranger to flash flooding. Earlier this month, Hurricane Hermine threatened New Jersey, reminding us that we are never immune to devastating flood waters.


According to one study that was published in Nature Climate Change, a warmer climate increases the risk for flooding. Some parts of the world are expected to see an increase in flooding because of the higher temperatures from global warming. Knowing that flooding can affect any one of our properties, it’s important to assess your risk and the need for flood insurance.


Here are five things to know about taking out a flood insurance policy.


1. Your homeowners policy offers no coverage for flooding.


Many homeowners are misled when it comes to flood insurance, as they think that it is included with their homeowners policy. But this is not the case. Standard policies do NOT cover floods, so additional coverage is necessary.


2. Flood insurance isn’t mandatory, unless you live in a high risk area.


Homeowners and landlords who live in high risk zones are required to purchase flood insurance for the life of the loan. However, if you do not live in a flood zone, it’s not mandatory to purchase flood insurance.


3. You can purchase flood insurance from property insurance agents or the National Flood Insurance Program.


The National Flood Insurance Program lists over 80 private insurance companies that provide flood insurance. You can also get flood insurance from a property insurance agent such as Hal Soden. Rates are set nationally, so it’s better to ask for discounts rather than compare prices.


4. Insurance isn’t cheap, but is more affordable than in the past.


Changes have been made to flood insurance to make it more attainable for Americans. Premiums vary based on the type of coverage and the individual factors of your property such as its style, age and location.


5. Know what's covered, as each policy is different.


Just as with any insurance policy, ask about what’s covered with your flood insurance policy. Generally speaking, building coverage covers the structure and foundation of the home, including your electrical, plumbing and HVAC systems. Contents policies cover what you own, such as furniture, small appliances and electronics.


If you’re interested in taking out a flood insurance policy, give Hal Soden a call. More and more Americans are learning just how important this type of insurance is!