How to Buy National Flood Insurance

Floods happen when and where they are least expected. Approximately 25% of flood insurance claims are from areas where floods are not likely to occur. No matter where you live, you should consider the benefits of flood insurance. All flood insurance in the United States is offered through the National Flood Insurance Program (NFIP), a division of FEMA. Investigate whether your community participates in NFIP and how you can enroll in coverage.

Difficulty: Moderate

Instructions

1. Visit the FEMA website and click on the flood insurance link on the right-hand side. Read the section on "General Flood Information." You will learn how to identify different types of floods, how to respond to floods and how to access FEMA flood plain maps.

2. Find the "Solutions" heading on the right of the general flood information page and click on "Buy Flood Insurance." This will take you to the FloodSmart website of the National Flood Insurance Program (NFIP) where you will see five steps toward pursuing flood insurance.

3. Educate yourself under "Learn the Basics." In the event of a flood, the consequences can either be the unpredictable response of national disaster assistance, or the planned approach of proactive flood insurance coverage. Find out about the benefits of flood insurance, as well as important questions to ask your Realtor, landlord and insurance agent.

4. Select "What's Your Flood Risk?" Enter your property address and get an estimated flood risk assessment. You will find a more specific description of what your flood risk rating means. Click on "Map Service Center" to access flood plain maps for your address, or order them by calling [phone].

5. Choose your computer's "Back" arrow to return to the FloodSmart website. Activate the "NFIP in Your Community" link. Learn how important it is that your community become involved in the National Flood Insurance Program. Check in your state's NFIP Community Status Book to see if your community participates in the program. You can also contact your city or county government offices. Learn also about the Community Rating System (CRS) that is based on the degree to which a community aligns itself with NFIP standards. Your community's CRS rating can result in a substantial discount in your flood insurance premiums.

6. Go to "Estimate Your Premium." Enter your risk level profile, whether flood insurance is already filed on your property and your property type. Hit "Submit" and take a look at the chart of premium estimates. If you live in a low risk area, annual premiums may be very minimal.

7. Finalize your flood insurance search by clicking on "Find an Agent." Enter your address and hit "Search." The system will display a long list of insurance agents, contact information and their agencies, beginning with the closest one to your address. You may also ask your own homeowners insurance company if they offer flood insurance. NFIP can also provide a list of "Write Your Own" insurance companies that provide flood policies in cooperation with the federal government. Call NFIP at [phone] for any assistance you may need. Compare several providers before purchasing a policy. From this page you can print a list of questions to ask each agent to aid in the comparison of plans.

Tips & Warnings

• Homeowners, renters and business owners can all purchase flood insurance in more than 19,000 communities that participate with NFIP.
• Mortgage lenders may require homeowners to purchase flood insurance if their home is being purchased in or near a flood plain. Research the flood history of your new home site carefully prior to finalizing purchase.
• There is a typical 30-day waiting period for new flood insurance to go into effect. This is not true, however, if flood insurance is being required by a mortgage lender.

Resources

• FEMA website
• Take a look at this site for the nitty-gritty on flood insurance and where to get it.