Flood zones are everywhere – not just along the coastline. In fact, 41 million Americans live in a high risk, or “Special Hazard” flood zones.  Don’t confuse home insurance and flood insurance. Flood coverage is excluded from almost all home insurance policies. There are a few companies who will build flood coverage into a home policy, but this is a rare exception.

If you are planning to purchase flood insurance, it’s important to know your options. By working with the right flood insurance agent, you can ask questions and ensure your needs are met. Below is some important information about coastal insurance in NJ and where to find it.

You may be required by your mortgage lender to get flood insurance.

Flood insurance is optional for some and mandatory for others. You are required to have flood insurance if your home falls in a high-risk oe “special hazard” flood area and you have a mortgage from a federally insured or regulated lender. If your home falls in a moderate or low risk area, flood coverage is optional. However, you may still want to consider this coverage for extra protection, as at least 30% of all flood damage happens outside of “special hazard flood zones”.  It’s a good idea to look at the actual flood map to see where the closest special hazard flood zone is in relation to your house.

Explore Private & Excess Flood Insurance Options

Both the Federal flood program and private flood programs are offered by independent insurance agents.  Flood insurance has changed drastically over the last few years due to several changes made by Congress.  As a result, in addition to the National Flood Insurance Program underwritten by the Federal government, there are now quite a few flood policy programs offered by private insurance companies.  Private flood insurance definitely does not make sense for every property, but it can provide broader coverage and/or save you quite a bit of money in the right situation. Some private flood insurance programs can also provide coverage above the maximum limits offered by the Federal program ($250,000 on your dwelling and $100,000 on your personal property).

Even if you’re not in a flood zone, you can benefit from flood insurance.

You may not think that coastal insurance in NJ is necessary if you don’t live near water, but it’s actually a very good investment. It takes just a few inches of water to cause major damage to the home. By having flood insurance, you protect your investment, your savings and your loved ones. Plus, flood insurance for someone in a lower risk area is less expensive.  Premiums start as low as under $200 per year.

Know what is covered. Flood insurance is a separate policy that only covers some types of floods.

It’s important that your insurance agent understands your individual risk. This way, they can help you choose a policy that meets your needs and budget. Flood insurance is a separate policy that only covers some types of floods. You can learn more about what a typical flood insurance policy covers by visiting FloodSmart.gov.

Flood insurance is something that many homeowners should consider, not just those in high-risk zones. And, it can be more affordable than you think. For your free quote on flood insurance, contact Soden Agency.