Why do I need flood insurance, even though my community has never been flooded?
Flooding occurs in moderate-to-low risk areas as well as in high-risk areas. Poor drainage systems, rapid
accumulation of rainfall, snowmelt, and broken water mains can all result in flood. Properties on a
hillside can be damaged by mudflow, a covered peril under the Standard Flood Insurance Policy.
Structures located in high-risk flood areas have a significant chance (26 percent) of suffering flood
damage during the term of a 30-year mortgage. In a high-risk area,
your home is more than twice as likely to be damaged by a flood than by fire.
For these reasons, flood insurance is required by law for buildings in high-risk flood areas as a condition
of receiving a mortgage from a federally regulated or insured lender.
Back to Frequently Asked Questions: Considering Purchasing a Policy