Floods are major events that have the ability to cause tremendous damage and destruction to property. Flooding can affect your family and your community: physically, emotionally and financially. These events can be catastrophic and unpredicatable, leaving very little time to prepare for it.

What is Flood Insurance?

Flood Insurance is a highly recommended special insurance policy supported and federally backed by the National Flood Insurance Program (NFIP) and available to all businesses, renters and homeowners for protection against damages due to flood, which is not covered by a basic home insurance policy.

In 2012, Congress approved the Flood Insurance Reform Act, which increases the rates of insurance covered to most flood insurance policyholders to reflect a more realistic flood risk, making the program more useful and stable.

Today, a standard flood insurance policy holder in Connecticut is insured for direct physical damage to properties up to the actual cash value or ACV of the replacement cost of actual damages or up to the limit of the flood insurance policy (whichever is lower).

For Business Owners:

• Covers up to $500,000 (non-residential building).

For Renters:

• A standard renter’s insurance policy does not cover a flood, but renters can talk with their insurance agents to determine if flood insurance can cover their belongings.

For Homeowners:

• Homeowners with flood insurance policies are covered up to $250,000 from a home’s structural damage, which includes damage to any floor surfaces, air conditioners, water heaters and debri that needs to be cleaned up.
• Higher policies of flood insurance in Connecticut can cover damages to personal property up to $100,000, such as your washer, dryer and freezer.
• Flood Insurance coverage for crawl spaces, ground-level enclosures and basements of elevated homes are limited. Talk with your insurance agent to determine restrictions on flood insurance coverage.

Purchasing flood insurance in Connecticut should be a priority, even if your property is not in a floodplain. It’s important that you prepare for these disasters before its too late. A typical flood insurance policy will take effect after 30 days of purchase, so it will be wise to prepare ahead by making sure that your property is protected by a flood insurance policy.

Key Takeaway:

• Floods are major events that can cause tremendous destruction and property damage. It affects you and your family physically, emotionally and financially.

• Flood Insurance is a highly recommended special insurance policy supported and federally backed by the National Flood Insurance Program (NFIP) and available to all businesses, renters and homeowners for protection against damages due to flooding, which is not covered by a basic home insurance policy.

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