Flood Insurance

National Flood Insurance Program

Flood damage is excluded under standard homeowners and renters insurance policies. Flood coverage, however, is available in the form of a separate policy both from the National Flood Insurance Program (NFIP) and from a few private insurers.

Congress created the NFIP in 1968 in response to the rising cost of taxpayer-funded disaster relief for flood victims and the increasing amount of damage caused by floods. The NFIP makes federally backed flood insurance available in communities that agree to adopt and enforce floodplain management ordinances to reduce future flood damage. The NFIP is self-supporting for the average historical loss year. This means that unless there is a widespread disaster, operating expenses and flood insurance claims are financed through premiums collected.

The NFIP provides coverage for up to $250,000 for the structure of the home and $100,000 for personal possessions. Private flood insurance is available for those who need additional insurance protection, know as “excess coverage,” over and above the basic policy or for people whose communities do not participate in the NFIP. Some insurers have introduced special policies for high-value properties. These policies may cover homes in noncoastal areas and/or provide enhancements to traditional flood coverage. The comprehensive portion of an auto insurance policy includes flood damage.

RSS Insurance Journal

  • Kentucky Drug Overdose Deaths Decrease for First Time in 5 Years July 23, 2019
    After years of rising death tolls from a surge in drug addiction, Kentucky officials on Thursday reported the first statewide drop in drug overdose deaths since 2013. A new report indicated that 1,333 people died from drug overdoses in 2018, …
  • Worley, Brown Launch Legion Claims Solutions in Louisiana July 23, 2019
    Legion Claims Solutions LLC (Legion), a firm specializing in the management of catastrophe insurance claims, environmental/industrial claims, and governmental disaster recovery programs, has opened in Baton Rouge, Louisiana. Seasoned industry professionals Steve Brown and Mike Worley have joined forces at …
  • With Commissioner’s OK, Wisconsin Workers’ Comp Rates to Fall by 8.8% July 23, 2019
    Wisconsin’s chief insurance regulator has approved an overall 8.84% decrease in workers’ compensation premium rates. The new rates approved by Commissioner of Insurance Mark Afable are effective Oct. 1, 2019, and are expected to save Wisconsin businesses more than $170 …
  • Washington Woman Charged with Running Construction Business While on Disability July 23, 2019
    A Spokane, Wash.-area woman faces a felony theft charge for allegedly running a construction business while claiming she was too disabled to work. Deborah J. Steeneck, 59, is accused of stealing more than $11,000 in workers’ compensation cash benefits from …