Where In NJ Is Flood Insurance Required Or Just Recommended

water droplets falling on puddleIt’s no secret that New Jersey is a flood-prone state. In fact, according to the National Flood Insurance Program (NFIP), over 25% of all flood insurance claims in the United States are filed in New Jersey.

However, what may come as a surprise to some is that not all areas of the Garden State are required to carry flood insurance. Only those areas designated as Special Flood Hazard Areas (SFHAs) by the Federal Emergency Management Agency (FEMA) are required to have it.

But just because an area isn’t designated as an SFHA doesn’t mean it’s immune to flooding. As a result, many homeowners in non-SFHA areas have dealt with the costly and devastating effects.

That’s why it’s crucial for all homeowners in New Jersey to at least consider purchasing flood insurance. It may not be required in your area, but it could still save you from a lot of heartache and expenses paid if a flood occurs.

What Is Flood Insurance, And Why Do You Need It?

Flood insurance is a type of property insurance that covers losses caused by water seeping into your home or business. It’s important to have flood insurance if you live in a flood-prone area, as it can help protect you from costly damages.

There are two types of flood insurance: personal and commercial. Personal flood insurance is for homeowners and renters, while commercial flood insurance is for businesses.

Most standard home and renters policies do not cover losses caused by flooding, so it’s vital to purchase a separate flood insurance policy if you want to be covered. However, it’s a small price to pay compared to the cost of repairing or replacing your home or business after a flood.

How Does Flooding Occur?

Flooding can happen anywhere, but certain areas are more prone to it than others because of the land’s topography and its proximity to a river or body of water. Just six inches of water cause 80% of all flood damage.

Sometimes, floods can be unpredictable and come with little warning, which is why it’s so essential that you have flood insurance in place before a flood occurs. Floods typically happen fast and with little notice, making them one of the most dangerous natural disasters out there. Even if you don’t live close to the coast, you could still deal with extensive flooding if there’s heavy rainfall or if your home is in a low-lying area.

Areas Where Flood Insurance Is Required Vs. Areas Where It’s Just Highly Recommended

If your home or business is in an area that falls within FEMA’s SFHA, then you’re required to have flood insurance to qualify for a federally backed mortgage. If you own property outside of this zone but still want coverage, then you can purchase a stand-alone policy. It’s wise to consider purchasing flood insurance if your home or business is within one of these zones since it could help protect you from costly damages.

There are two types of flood insurance policies: NFIP and private. The Federal Emergency Management Agency (FEMA) manages the National Flood Insurance Program (NFIP), which can help cover your losses in the event of a severe flood. All 50 states take part in the program, including New Jersey.

How To Purchase Flood Insurance

You can contact an insurance agent to purchase flood insurance. You can also apply for flood insurance through your mortgage company if your home is in a high-risk area.

When purchasing flood insurance, read the policy carefully to understand what is covered. For example, some policies do not cover damage caused by flooding from sewer backups or water that seeps up through the ground, so it’s important to know what you’re covered from before a flood happens.

The Benefits Of Having Flood Insurance

Flood insurance is an important policy to have in case of a flood, as it can help cover the costs of repairing or replacing your home or business. Some benefits of having flood insurance include:

Peace Of Mind

Knowing that you’re covered in case of a flood can give you peace of mind, especially if you live in a high-risk area.

Coverage For Losses Not Typically Covered

Most routine home and renters policies do not cover losses caused by flooding, so it’s crucial to purchase a separate flood insurance policy if you want to be covered.

Financial Assistance

Flood insurance can help pay for the costs of repairing or replacing your home or business after a flood. Even if you don’t have the financial resources to fix everything right away, flood insurance can help provide quick access to funds so you can pay for temporary housing and repairs as soon as possible.

Where Should I Get Flood Insurance?

Talk with your local agent about what’s covered by your homeowner’s policy and any potential gaps. If your homeowner’s policy does not cover a large percentage of damages caused by floods, purchasing a separate flood insurance policy from a local agency should be at the top of your list.

You may be surprised at how affordable flood insurance is. And don’t wait until a storm is headed your way—apply for coverage today.