Flood Insurance: What You Need to Know


Flood Insurance is a separate policy designed to protect your building and personal belongings from damage caused by rising water due to heavy rainfall or flooding. It’s important to understand that standard homeowner’s insurance does not cover flood-related damage. While water backup coverage may be included in your home policy, it does not apply to flooding caused by rain or overflowing bodies of water. To be fully protected from these types of events, a dedicated Flood Insurance policy is essential.

New Jersey, especially Morris County NJ, has seen a rise in flood insurance claims in recent years due to increased rainfall and more frequent hurricanes. It’s important to understand that you don’t have to live in a designated flood zone to purchase flood insurance. In fact, policies for properties outside high-risk flood zones are typically more affordable than those required for homes within flood zones. Protecting your property before disaster strikes can save you significant costs and stress in the long run.

What Is Flood Insurance?
Flood insurance is a separate policy that covers damage to your property and belongings caused by flooding. Flooding is defined as an excess of water on land that is normally dry, and it can result from heavy rainfall, hurricanes, snowmelt, blocked storm drainage systems, or overflowing rivers and lakes.

What Does It Cover?
Flood insurance typically offers two types of coverage:

  • Building Property Coverage:
    Covers the physical structure of your home or building, including:

    • Foundation and walls

    • Electrical and plumbing systems

    • Central air conditioning, furnaces, and water heaters

    • Built-in appliances and cabinets

    • Detached garages (limited coverage)

  • Personal Property Coverage:
    Covers the contents of your home, such as:

    • Furniture, clothing, and electronics

    • Washers and dryers

    • Curtains, rugs, and other personal items

    • Portable appliances

    • Freezers and food inside them

What’s Not Covered:
Flood insurance does not typically cover:

  • Damage from moisture, mildew, or mold not caused by flooding

  • Temporary housing or living expenses during repairs

  • Property outside of the insured building (e.g., decks, patios, landscaping)

  • Financial losses caused by business interruption

  • Cars and other vehicles (may be covered under auto insurance)

Who Needs Flood Insurance?

  • Homeowners in high-risk flood zones (often required by mortgage lenders)

  • Homeowners in moderate-to-low risk zones (recommended for peace of mind)

  • Renters and business owners can also purchase policies to protect their belongings or commercial property

Cost of Flood Insurance
Premiums vary based on:

  • Location and flood zone

  • Elevation and structure of the building

  • Amount of coverage chosen

  • Deductible selected

Properties outside high-risk areas usually qualify for lower-cost Preferred Risk Policies.

To start a quote, click on the link HERE