All too often, homeowners learn after the fact that protection against flood loss is not part of their homeowners insurance package. Not all flooding occurs within designated flood plains, but may occur anywhere. Nationwide, approximately 30 percent of flood insurance policy holders live outside a flood plain, and in Washington, that percentage rises to 40 percent. Mortgage lenders require flood insurance on federally insured mortgages. However, this is for the structure only.
Homeowners still have the option to purchase flood insurance for the contents of their homes.
Flood insurance is available only to residents of communities which have agreed to adopt and enforce local flood plain management ordinances. To find out whether a community is participating in the NFIP program, call your local insurance agent. Protection against flood losses-Standard homeowners insurance policies do not compensate for flood damage. Less expensive than federal disaster loans-Average annual premiums for NFIP coverage are significantly less expensive than loan payments, even when those loans are granted under favorable terms. Also, flood damage from events that are not declared major disasters is still covered by NFIP policies.