What Does Flood Insurance Cover and is it Required in NJ

If you’re a homeowner or business owner in New Jersey, especially if you’re located near the coast, you might think a flood insurance plan is a great idea for you… and you’re right.

Flood insurance is a great way to protect your home or business, as well as your property, are covered in the event of the unexpected. But what does flood insurance cover and is it required in NJ? Continue reading to find out.

The Impacts of Flooding

While many people don’t think of flooding as a big deal, or something that needs its own coverage, the truth is that flooding is more common than you think, especially in residential areas that are in high-flood locations or near the coast.

And flooding can do some major damage. Not only can it cause structural damage, destroy property, and waterlog a home, but flooding can lead to electrical problems, plumbing issues, and even cause dangerous black mold and/or mildew that can lead to health problems.

To say nothing of the cleanup involved after a major flood. All the cleanup, repairs and replacements associated with flooding can cost into the thousands of dollars, along with medical bills associated with a bad case of mold.

Having an insurance policy in place to mitigate the costs of flood cleanup is so important. Major flooding can bankrupt a family. There’s no reason to run that risk when you can get an insurance policy to protect you.

How Flooding Happens

Flooding can happen for several reasons. Weather events like hurricanes or strong storms, as well as other natural disasters and incidents, broken water mains, and more.

New Jersey, in particular, has a higher percentage of flood insurance policies, and for good reason.

Many areas of New Jersey are especially prone to flooding, and with coastal areas, naturally, the risk is higher there, too, especially in certain seasons when hurricanes, thunderstorms and other weather events are high.

Ways to Get Flood Insurance

You can purchase flood insurance from the National Flood Program as well as the Natural Catastrophe Insurance Program (CAT coverage), however, policies via the National Flood Program are limited to $500,000, for both business and commercial.

CAT Coverage also has some limitations. One might be right for you, however, it’s a good idea to compare these plans with some others before making a decision about your coverage.

Companies like Anderson Insurance Agency and others can offer more extensive flood insurance, as well as insurance policies through National Flood Program and CAT Coverage, all at low prices.

These plans include a higher coverage amount, sometimes up to $10 million, and include coverage not just for general flooding but for flooding related to natural disasters such as mudslides, earthquakes, landslides and more.

Coastal Property Insurance

You may also be interested in coastal insurance, if you live or own property near a beachfront or other coastal areas. This is very important if your property is in a high-risk area that often sees flooding and damage during hurricane season.

Most coastal policies consist of deductibles that you can add to your existing standard homeowner’s insurance policy. Homes that are near the coast are much more susceptible to damage – not only from flooding but from wind damage, storm debris damage, and more.

Coastal insurance will cover all these issues.

As there are so many different types of damage risks in coastal areas, you will need to speak with your agent about the different deductibles to add to your policy (there are deductibles for everything from wind damage to basic flooding, hurricane deductibles and so on) to make sure that the policy you choose covers your specific needs and mitigates any risk factors for your area.


Many people don’t plan for flooding and never take out a flood insurance policy. Why? Because they wrongly assume that the government – whether local or national – will cover any damages caused by natural disasters.

Unfortunately, this isn’t the case. When your home is severely damaged by flooding, you’re on the line for any financial costs associated with the cleanup, repair and maintenance of your home.

If your home or business floods, and you don’t have insurance, you could be in big financial trouble. Having a flood insurance plan in place will make sure that you don’t go bankrupt when your home floods.

Another misconception is that basic home insurance plans cover flooding. The unfortunate truth is that most do not. Adding a flood policy/flood deductible to your homeowner’s insurance is a very smart thing to do, to ensure that your home is protected.

Don’t just hope for the best with no policy in place. The truth is that flooding is one of the most prevalent causes of structural damage in residential properties in the United States.

With 70% of the population living within two hours of the coast, well, you do the math. Having flood insurance is not only smart; it’s a must.

Business Flood Protection

And those of us who own businesses: don’t forget to protect your livelihood.

Businesses near coastal areas or areas prone to flooding and natural disasters should definitely get a comprehensive flood insurance plan as part of a good business policy.

Naturally, you want to protect your business location and the materials, equipment, inventory, technology and more that are housed within.

Flooding can do extensive damages; make sure you’re not on the line to replace it all out of pocket. Business insurance plans with flood deductibles are easy to obtain and generally affordable. Talk to your agent today.

So, back to our original question, what does flood insurance cover? Now you know the answer.

Homeowners and business owners alike in New Jersey know that having flood insurance is the best possible thing they can do to protect their home, their property, and their assets.

See what an affordable plan can do for you, by discussing policies with a reputable insurance agent.

They’ll find you quotes from many different insurance companies, so you can compare coverage, premiums, deductibles and more, to customize the best insurance plan for your home.

Flood insurance doesn’t have to be expensive. You can find a comprehensive plan for a low premium if you go with the right insurance company.