Flood damage is NOT a covered peril in a standard Iowa homeowner’s insurance policy.
Flood insurance isn’t just for those who live in low areas along rivers and creeks. Floods can happen anywhere, in fact about 25% of all flood related claims occur in areas with low to moderate risk. That’s why flood insurance is recommended for all property owners and renters. The chance for a home to be destroyed by flood is more than twice as high as the risk for fire, yet many people do not carry flood insurance unless their mortgage lender requires it.
Here in Cedar Rapids we know too well the destruction that flooding can do. Flood insurance covers direct physical loss to your home and personal property. It is available to nearly everyone in Iowa: homeowners, renters, condos, mobile homes and businesses. You can get flood insurance whether you live in a floodplain or not, in fact it’s more affordable if you don’t. Don’t wait until there’s a flood warning to buy flood insurance. There is a 30 day waiting period to start coverage from the date of the application in most cases.
Can I buy flood insurance if I don’t live in a “flood zone”?
As long as the community you live in participates in the National Flood Insurance Program, you may purchase flood insurance for your home, business or rental unit, even if you live in a moderate to low risk zone (Zone B, C or X). In fact you may qualify for a preferred rate policy. You aren’t required to insure your property for the full the replacement cost. For example a homeowner on a preferred risk policy with a $20k limit on the building and an $8k limit on contents will pay just $177/year for flood insurance. Those without a basement, just $146, based on 2016 rates. See the National Flood Insurance Program website for current premiums on a preferred rate policy.
Does renters insurance cover personal property damaged by flood?
No. If you rent your home and your personal property such as furniture, electronics, clothing and housewares is lost by flood water, your renters insurance policy will not cover it. Renters, including businesses who rent, can get flood insurance that covers their personal property but not the building – which is the landlord’s responsibility. Your landlord’s flood policy will not cover your property.
Related article: Many still uninsured for Cedar Rapids’ second worst flood in history
Insurance Gurus LLC is a locally owned, independent insurance agency located in Cedar Rapids, IA. We are a member of the Independent Agents and Brokers of America and a Trusted Choice agency. Call today for an affordable flood insurance quote.