Flood insurance isn’t as common as it should be in Missouri. Missouri Flood insurance isn’t something that is required on every home purchase but that doesn’t mean you don’t need it. In other words, no home is completely safe from potential flooding. The National Flood Insurance Program, also called NFIP, was developed by congress in 1968 for property owners to protect themselves from flood events. In addition, the program allows property owners in participating communities to purchased protection that is administered by the government. Therefore, congress also put into legislation the requirement for flood insurance for all loans or lines of credit that are secured by existing buildings, manufactured homes, or buildings under construction, that are located in participating community.
What is a Participating Community?
A participating community has an agreement with the federal government that states that if the community will adopt a floodplain management ordinance to reduce future flood risks to new construction in Special Flood Hazard Areas, the government will make flood insurance available.
Flooding can be both emotionally and financially draining. With flood insurance, you are able to recover faster with as many out of pocket costs. Without flood insurance, your family may be forced to make repairs out of pocket or take out additional loans to fix the damage.
Do You Need Flood Insurance in Missouri?
Lets take a look at some facts about Insurance in Missouri.
Missouri Homeowners and renters insurance does not typically cover flood damage.
More than 20 percent of flood claims come from outside high-risk flood zones.
1 inch of Water is known to cause about 25,000 in damage.
What does Missouri Flood Insurance Cover?
Not every policy is made the same. Flood insurance can be purchased through the NIFP program along with private companies. Therefore, each policy may be different so it is important to talk to your agent forehand.
Contents – Flood insurance can include coverage for your contents. Typically, it is purchased separately from the building/structure coverage and will have a separate deductible. For a proffered risk policy, you might have an option for combination coverage for both the building and contents. However, the deductible will likely still be separate.
Building Coverage – Similar to contents coverage, building coverage is designed to protect a home, building or business.
Examples of Building Coverage
- Electrical and Plumbing systems
- Furnaces, water heaters, heat pumps or sump pumps
- Permanently installed carpeting
- Window Blinds
- Foundation walls
Examples of Contents Coverage
- Personal Belongings
- Curtains
- Laundry Washers
- Certain valuable items subject to certain limits
What is not Covered
The cause of your flood matters. Damage caused by a sewer backup is only covered by flood insurance if it is a result of the flooding. Consequently, the damage is not covered it it is a result by some other problem. Here a few more big tickets items that may not have coverage:
- Damage caused by moisture or mold that could have been avoided
- Damage caused by Earth Movement
- Additional living expenses
- Loss of use or access to the property
- Financial losses caused by business interruption
It is important to remember that not every policy is made the same. In other words, read your policy very carefully. Therefore, most NIFP polices are standardized, those purchased through the private market may not be the same.
Are you required to have flood insurance in Missouri?
Homes and businesses in high risk areas are required to have flood insurance if they have a mortgage from federally regulated or insured lenders. Consequently, when purchasing a home, it is recommended that you look at the flood maps to ensure your new home will not require flood insurance. Furthermore, if you live in a high-risk flood zone and your have received disaster assistance in the form of grans from FEMA or low-interest disaster loans following a Presidential Disaster Declaration, you might be required to maintain flood insurance.
What is a Flood Insurance Map?
FEMA works with communities across the country to identify flood hazards. Consequently, the flood maps are used to manage the risk, rate flood insurance, and determine requirements for flood insurance. No matter where you live, you pose some form of flood risk. You can find your communities flood map at FEMA Flood Map.
What is an Elevation Certificate
An elevation certificate is sometimes required when purchasing flood insurance. It is your building or dwellings elevation in comparison to the estimated height floodwaters will reach during a flood.It helps determine the risk your home or business posses. Likewise, an elevation certificate is used to determine your flood insurance premium.
Where to get an Elevation Certificate
If your home is in a high risk area, you will likely need to get an elevation certificate.
- Ask your local floodplain manage. One already might be on file.
- If you are purchasing your home, ask the sellers.
- Ask the developer or builder
- Check the property deed. Elevation Certificates can sometimes be included in the deed.
- Hire a licensed land surveyor, professional engineer, or certified architect who is authorized by law to certify elevation information. Typically they will charge a fee.
Your policy is calculated based on:
- Year of Construction
- Building Occupancy
- Number of Floors
- Location of its Contents
- Flood Risk
- Location of the Lowest Floor
- Deductible
- Amount of Contents and Building Coverage
Keep Your policy In Force
Typically your flood risk often has a lot to do with how much you pay for insurance. You might live in an area where FEMA has issued a new Flood Insurance Map that shows an increase in risk. The Newly Mapped Procedure allows policy holders to continue paying at a lower price for one year after the new map is released. After the first year they are “grandfathered” and policy holders will not see rate increases higher than 18 percent. However letting your policy lapse could really cost your. If your policy lapses for more than 90 days you could be required to provide an elevation certificate. Consequently, if FEMA has issued a new flood map, you might also be subjected to a higher rate.
How to Buy Flood Insurance?
The National Flood Insurance Program Policies can be purchased through local Agents like MBG Insurance. You can get your quote started by visiting our Get-A-Quote page.