California Flood Insurance

When water levels rise, make sure you have flood insurance to protect you against the worst.

California often suffers from terrible droughts, so the rain is always welcome. However, a deluge of rain can also lead to some of the worst floods in history.

No part of California is safe from the possibility of a flood, although your risk may be lower depending on where you live. Any place where waterfalls, is a possible flood zone. Because minimal risk is still risk, the only way to truly protect yourself from the financial devastation of a major flood is with flood insurance policy.

Buying Flood Insurance in California

In California, flood insurance is available through the National Flood Insurance Program (NFIP) overseen by the Federal Emergency Management Agency (FEMA). While it is a government program, independent insurance agencies like IBW write policies for customers every day.

30 Day Wait: When you purchase a California flood insurance policy, it does not go into effect for 30 days. The exception to this rule is when you buy a home in a designated high-risk area and get a mortgage from a federally regulated lender. In this case, coverage takes effect immediately.

Coverage Limits: The policy limits for flood insurance are mandated by the federal government. Residential policies carry a maximum limit of $250,000 for the structure and $100,000 for your personal property. Commercial policies offer a maximum limit of $500,000 each for the structure and the contents.

Flooding Events

Not all damage caused by water is considered a flood under your insurance policy. For example, a pipe burst in your home won’t be treated like a flood, but it should be covered by your homeowner’s insurance.

It’s important to understand what your insurance policy defines as a flood:

• An overflow of tidal or inland waters
• Mudflow: a river of liquid and flowing mud on surfaces of typically dry land. Mudflows occur when earth is carried by a current of water. If it looks like chocolate milk, that’s a flood.
• Flash floods and other unusual or rapid accumulation or runoff of surface waters from any source

What’s Not Covered by a California Flood Insurance Policy

Some flooding can occur as a result of other events. These are not covered by a flood insurance policy. Where available, it’s a good idea to purchase a separate policy for events that offer insurance coverage. This keeps you and your family better protected.

• Earthquake
• Landslide
• Land subsidence
• Sinkholes
• Destabilization or movement of land because of water accumulation
• Gradual erosion

How Much Does Flood Insurance Cost in California?

What you pay for a California flood insurance policy depends on several factors including what your local community has done to mitigate floods, what flood zone your property is located in, and what, if any, changes you’ve made to the structure of your home to reduce your risk from a flood. Flood insurance for low risk flood zones tend to cost much less than in high-risk areas. Everyone needs flood insurance, regardless of where you live in California.

Ready to add an extra layer of protection for your family? Contact IBW to learn more about flood insurance for your home.