Experience can be a hard teacher.

In the wake of recent hurricanes, many property owners regretted failing to buy adequate flood insurance coverage before disaster struck. They learned the hard way that homeowners insurance doesn’t normally cover flood losses, and that purchasing flood insurance is the best way to protect property against financial losses due to flooding.

Every property owner needs flood insurance.

Under National Flood Insurance Program (NFIP) regulations, lenders must require the purchase of flood insurance when making, renewing, extending or increasing loans on properties in FEMA-designated Special Flood Hazard Areas. But even for properties outside those high-risk flood zones, flood insurance offers a sound financial investment; after all, experience has shown that flooding can happen anywhere.

A variety of flood insurance options are available.

Standard policy. First American sells and services standard flood insurance policies that are underwritten by the federal government through the NFIP, which determines the premiums and coverages. The standard NFIP policy covers structures but not their contents; separate contents coverage is available.

Flood coverage limits/Building: $250,000 for residential structures and $500,000 for commercial structures.

Flood coverage limits/Contents: $100,000 on residential policies and $500,000 on commercial policies.

Excess flood policy. For properties valued at more than $250,000, First American offers an “excess flood” policy to provide additional flood insurance coverage beyond the NFIP maximum. Coverages are available for both structure and contents.

Preferred Risk policies. Inexpensive NFIP “preferred risk” policies are designed for residential properties outside Special Flood Hazard Areas—that is, properties in B, C, or X zones on FEMA’s current Flood Insurance Rate Maps. Coverage limits are $250,000 for the home’s structure and $100,000 for the contents.

Go to our Flood Insurance Web Site for additional information and On-line Flood Insurance Quotes.

 Contact a product specialist about NFIP flood insurance and excess flood coverage from First American.