Flood Insurance for Anchorage and the Valley
Did you know that most property insurance policies do not cover flood losses? If your community participates in the National Flood Insurance Program (NFIP) you can get federal flood coverage for your home or business.
By selecting federal flood insurance from a reliable company or agency, like us, you'll have peace of mind knowing that you'll receive a high level of customer service, when you need it most. Learn more about flood insurance and see if your home or business is eligible…
Why do I need this insurance?
Over 90% of all presidential-declared disasters in the United States are flood related. Leveling forests, overbuilding the land, and increasing use of asphalt all reduce the soil’s natural ability to absorb excess water, compounding the risk of disastrous flooding. Most homeowner, renter, landlord and business insurance polices exclude coverage for flooding.
What is a flood?
Run off or unusual or rapid accumulation of surface waters from any source, such as heavy rainstorms, melting snow.
Overflow of inland or tidal waters.
Mudslides caused by flooding.
Storm surges caused by tropical storms or hurricanes.
What should I consider?
Don’t rely on federal disaster assistance alone. Less than 50% of all flooding incidents are declared federal disaster areas. When an area is declared a federal disaster, assistance is provided in the form of loans that must be repaid - principle plus interest.
Whether you can purchase flood insurance and how much depends directly on your community’s flood program status.
Over 18,000 communities through the U.S. participate in the National Flood Insurance Program (NFIP), a federal government flood insurance program.
If your community is a participant, you can purchase this flood coverage for your home or business. There is a waiting period, however, before flood insurance becomes effective.
The standard waiting period is 30 days from the application and premium payment date, with two exceptions.
One exception to this rule is when flood insurance is required for a mortgage loan.* In this case, the effective date of the flood insurance coverage is the loan closing date. The other exception is if an area has just been designated as a flood zone.
*By law, properties located in Special Flood Hazard Areas purchased with a loan from a federally insured lender (e.g. FDIC) or federally guaranteed (VA or FHA loans) must be insured by a Federal Flood Insurance Policy. Lenders are required to mandate borrowers purchase flood insurance when the money for the loan is federally regulated or insured. Unfortunately, only 25% to 30% of these properties are in compliance with the law. Subsequent legislation allows the NFIP to fine lenders that don’t enforce this regulation.
How do I choose the right company?
There are about 95 private insurance companies currently selling and servicing the National Flood Insurance Program for the Federal Government. Since flood insurance rates are established by the Federal Government, they do not vary by company.
All companies selling federal flood insurance coverage offer the same coverage at the same price.
What differentiates companies is the level of service provided by the agent and company during the policy period or in the event of a loss. Reliability is key.
What are my coverage options?
Federal flood insurance includes coverage for the following damaged basement** items:
Furnaces…Hot water heaters…Air conditioners…Heat pumps
Utility connections…Sump pumps…Fuel and water tanks
Drywall or sheet rock walls…Fiberglass insulation
Electrical wiring and circuit breaker boxes
Clean-up after the flood
The base insurance plan also includes up to $750 for reasonable expenses incurred to protect your building from the imminent danger of flood, such as sand bagging.
Contents Coverage can be purchased to cover food freezers and clothes washers and dryers to the list of covered items in a basement and all personal property items located in the building above ground.
Replacement Cost Coverage applies to single-family dwellings and residential condominium building associations. To qualify, the building must be your principal residence, it must be owner occupied and it must be insured at the time of the loss for at least 80% of the building’s replacement cost or the maximum coverage available, whichever is less.
Building coverage limits
Residential homes can be insured for up to a maximum of $250,000 building coverage.
Non-residential buildings can be insured for up to a maximum of $500,000 building coverage.
If the building’s replacement value is less than the maximum allowable building coverage limit then, ideally, the limits selected should be carried at replacement value.
Why you do not want to overlook Contents Coverage
Data from flood claims show a foot of water in a building can destroy 60% of the personal property contents. Flash flooding usually causes more contents damage than damage to the building itself. The maximum Contents Coverage limit available is:
$100,000 on a Standard Flood Insurance Policy
$60,000 on a Preferred Risk Policy
Personal property contents are only covered on an actual cash value basis.
** The National Flood Insurance Program defines a basement as any room where the floor of the room is below ground on all sides by any amount. "Walkout" and "daylight" basements may not be considered a basement for flood insurance purposes.
What about discounts and savings?
No discounts are available because all companies selling federal flood insurance coverage offer the same coverage at the same price.
