Flood Insurance

Gray Insurance Agency offers flood insurance through the NFIP, National Flood Insurance Program.

Flood insurance can only be purchased through an insurance agent; you cannot buy it directly from the federal government. Homes and businesses with mortgages from federally regulated or insured lenders in high-risk flood areas are required to have flood insurance. While flood insurance is not federally required if you live in a moderate-to-low risk flood area, it is still available and strongly recommended. As with any other type of insurance, it's important to know what your policy does and doesn't cover. For example, damage caused by a sewer backup is only covered by flood insurance if it's a direct result of flooding. The damage is not covered if the backup is caused by some other problem

Anywhere it rains, it can flood. A flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow. Many conditions can result in a flood: hurricanes , overtopped levees, outdated or clogged drainage systems and rapid accumulation of rainfall.

Just because you haven't experienced a flood in the past, doesn't mean you won't in the future. Flood risk isn't just based on history, it's also based on a number of factors: rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development.

Flood-hazard maps have been created to show different degrees of risk for your community, which help determine the cost of flood insurance. The lower the degree of risk, the lower the flood insurance premium. The NFIP, a federal program, offers flood insurance, which can be purchased through most leading insurance companies. Rates are set and do not differ from company to company or agent to agent. These rates depend on several factors, including the date and type of construction of your home, along with your area's level of risk. Most premiums include a Federal Policy Fee and ICC Premium. If your community participates in the Community Rating System (CRS), you may qualify for an insurance premium discount in some communities of up to 45% if you live in a high-risk area and up to 10% in moderate-to-low risk areas.

Payment must be made for the full year's premium. The National Flood Insurance Program accepts check and credit card payments (American Express, Discover Card, MasterCard or Visa).

Typically, there's a 30-day waiting period from date of purchase before your policy goes into effect. Here are the only exceptions:

If flood insurance is being purchased in connection with the making, increasing, extending or renewing of your loan.

If a building has been newly designated in the SFHA and flood insurance is being purchased within the 13-month period following a map revision.

If flood insurance is required as a result of a lender determining that a loan that does not have flood insurance coverage should be protected by flood insurance.

If an additional amount of insurance is selected as an option on the renewal bill.