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Earthquake & Flood Insurance

What's My Flood Risk?

Did you know everyone lives in a flood zone? You don't need to live near water to be flooded. Approximately 25 percent of flood losses occur in low to moderate risk areas. Would your home or business be protected in the event of a flood?

It doesn't matter whether your flood risk is high, medium, or low, you're eligible for Flood Insurance as long as your community participates in the National Flood Insurance Program. Given that most Homeowners, Condominium, Mobile Home, Renters, or Business Insurance Policies exclude flood coverage, a Flood Insurance Policy can help protect the most valuable asset you own: your home or your business.

What is a Flood?

A flood is defined by the National Flood Insurance Program as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is the policyholder's property) from:

  • Overflow of inland or tidal waters; or

  • Unusual and rapid accumulation or runoff of surface waters from any source; or

  • Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above; or

  • Mudflows

Leveled forests, overbuilt land, and an increased use of asphalt have reduced the soil's natural ability to absorb excess water, compounding the risk of disastrous flooding.

Why Can't I Rely on Federal Disaster Assistance?

What if there's a serious flood in your area? Don't rely on Federal Disaster Assistance alone. Less than 50 percent of all flooding incidents are awarded a Federal Disaster Assistance declaration. If the President declares a Federal Disaster Area, most disaster assistance is provided in the form of a loan that must be repaid - principal plus interest.

Some Important Facts About Federal Disaster Assistance:


  • The average individuals and Household Program (IHP) award is around $4,000.

  • The duration of a Small Business Administration (SBA) disaster home loan is approximately 30 years.

  • Repayment on a $50,000 SBA residential disaster home loan is $240 a month, or $2,880 annually.4

What's the Advantage of Flood Insurance Protection?

If you experience a flood, your claim will be paid by your Flood Insurance Policy with no payback requirement like there would be for a Federal loan. Primary flood insurance limits are set by the government and are:

  • Flood Insurance reimburses homeowners for all covered losses up to $250,000 for the building and $100,000 for contents.

  • For businesses, Flood Insurance will pay up to $500,000 for the building and $500,000 for the contents.

  • For renters, Flood Insurance will pay up to $100,000 for personal belongings.5

Excess flood insurance limits may be available should you wish to have higher limits.

Depending on where you live, the average cost of a primary Flood Insurance Policy is less than $400 annually. 

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