Flood Insurance

What is a Flood?

In simple terms, a flood is an excess of water on land that is normally dry. Flood insurance covers direct physical loss caused by a flood. But what is a “flood?” For a more complex and detailed definition, The National Flood Insurance Program defines a flood 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 your property) from:

      • Overflow of inland or tidal waters,
      • Unusual and rapid accumulation or runoff of surface waters from any source,
      • Mudflow, 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.”

Do you need Flood Insurance?

YES! Whether you live near the water or not, you should always be ready. The biggest mistake you can make is to believe you do not live in a flood zone. The fact is, EVERYONE lives in a flood zone and needs flood insurance.

Floods can happen anywhere, anytime. Even an inch of water in your home can cause extensive and expensive damage. Consider the following:

    • Floods are the most common and costly natural disaster, according to the Federal Emergency Management Agency (FEMA).
    • In the past several years, about 60 percent of all declared disasters involved flooding.
    • Floods are caused by storms, hurricanes, water backup due to inadequate or overloaded drainage systems, as well as broken water mains. In Florida especially, slow-moving tropical storms can result in significant inland flooding.
    • You do not need to live near water to be flooded. Some of the most damaging and costly floods occur hundreds of miles from coasts and river banks.
    • Nearly one-third of flood insurance claims come from low-to-moderate risk areas. In areas with the greatest risk of flooding, a building has a 26 percent chance of being flooded during a 30-year mortgage.

What Does a Flood Insurance Policy Cover?

A standard flood policy covers the home’s structure (building) for up to $250,000 and its contents up to $100,000. In addition to the building, the structure portion of the policy will typically cover furnace, water heater and air conditioner damage, flood debris clean up and flood surface damage such as installed flooring. The contents portion will typically cover furniture, clothing, and electronics.

If you need an additional amount of coverage based on the value of your home and contents, excess flood policies are available. For renters, flood insurance is available for contents coverage up to $100,000. Flood insurance is also available for business owners (non-residential property owners); standard coverage includes up to $500,000 each for a building and its contents.

If You Wait, It May Be Too Late

Flood insurance is typically subject to a 30-day waiting period, meaning that it will not cover losses incurred within 30 days after the policy effective date. So don’t wait until a hurricane is forecast in your area to purchase a flood policy or it will be too late to have coverage for that storm. If a policy is purchased in connection with a mortgage, the 30-day waiting period does not apply.

How Much Does Flood Insurance Cost?

Flood insurance rates are set and do not differ from company to company or agent to agent. These rates depend on several factors, including the date and type of construction of your home, along with your location and your area’s level of risk. If you live in a moderate to low risk area and qualify for the Preferred Risk Policy (PRP), below you’ll find a sampling of policy premiums for different amounts of coverage:

Building & Contents

Contents Only


Annual Premium


Annual Premium

$20,000 / $8,000




$30,000 / $12,000




$50,000 / $20,000




$75,000 / $30,000




$100,000 / $40,000




$125,000 / $50,000




$150,000 / $60,000




$200,000 / $80,000




$250,000 / $100,000




*Rates effective October 1, 2013


Your best choice for insurance

The first right decision in protecting all of your assets is finding an insurance agent who understands YOU and your family. We pride ourselves in taking the time to discuss your needs to ensure that you don’t find a gap in coverage when you need it most…something that can’t always be done in 15 minutes and is too important to rush. Make sure you and your family are fully protected and call us at 407-977-5700 or email any time at robert@wurzelagency.com.

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