What you need to know about flood insurance

Flooding in Rock Valley in June 2024. (Submitted photo)

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DES MOINES — A general misconception holds that flooding usually occurs from a river or stream.

Yet, flooding often occurs from a high rainstorm that causes rapid accumulation or runoff of surface waters. Did you know that just one inch of floodwater can cause up to $25,000 in damage?

When your community participates in the National Flood Insurance Program, all property owners are eligible to purchase federally backed flood insurance whether or not their property is located within a Special Flood Hazard Area.

Most homeowner's insurance does not cover flood damage. However, a separate insurance policy underwritten by the NFIP can be purchased by property owners, renters and businesses to cover losses to buildings and their contents during a flood event.

Unfortunately, NFIP policies have steadily declined for several years. For example, in 2019 Iowa had over 13,000 NFIP policies. Last year, the total number dipped below 10,000.

The decline in flood insurance coverage comes at a time when floods have become the most frequent and costliest disaster across the United States. Nearly 90% of the nation's natural disasters involve some level of flooding.

One of the benefits of flood insurance coverage is that policyholders can make a claim even when there isn't a federal disaster declaration. As long as floodwaters partially or completely inundate two or more properties of normally dry land, a claim can be made for damages incurred by floods.

Having flood insurance coverage doesn't make property owners ineligible for federal disaster assistance either. FEMA encourages policyholders to apply for disaster assistance for expenses not covered under their flood insurance. Expenses related to temporary housing costs and replacing medication could be covered through disaster assistance.

Forty percent of claims made to the NFIP come from buildings located outside of the Special Flood Hazard Area (a 100-year floodplain).

Property owners should not rely solely on disaster assistance to help recover from flooding. Federal disaster assistance comes in the form of a loan that must be repaid with interest.

FEMA says that from 2016 to 2022 the average disaster payment was $3,000, while the average flood insurance claim was $66,000.

To make flood insurance more accessible to property owners FEMA has created a direct-to-consumer online quoting tool. Available on FloodSmart.gov, this tool allows you to create an NFIP flood insurance quote based on a home's address and simple characteristics of the home.

The tool uses the same risk rating engine that insurance agents use and will create a quote as if an insurance agent created it. After entering about 10 pieces of information and the coverage limits you want, the tool will generate a quote based on the deductibles you chose.

This quote can be printed and emailed to your insurance agent who can assist you in purchasing a policy. Or, you can find an agent on FEMA's Flood Insurance Provider List.