If You Live in Connecticut, Do You Need Flood Insurance?
Flood insurance becomes an integral part to owning a home in certain regions of the country. Congress requires federally-regulated insurers to provide flood insurance in high-risk areas, as homeowners’ policies do not provide such coverage.
If you live in Connecticut, here’s a simple guide to determining if you need flood insurance.
If You Live on the Shoreline
The FEMA Flood Insurance Rate Map considers the Shoreline, particularly towns from New Haven to Old Saybrook, to be high risk. Hurricane Irene and Superstorm Sandy hit this region hard; as a result, premiums increased 18 percent in 2014 to cover the FEMA subsidy over time.
What does “high risk” actually mean? Homes within these areas have a one in four chance of flooding when you have a 30-year mortgage. Two, purchasing flood insurance becomes essential if you are to take out a mortgage.
Because homeowners’ policies don’t cover flood damage, you won’t receive reimbursement if your home experiences water damage, which totals $27,150 on average if even a foot of water enters your property. As a result, homeowners in high-risk areas pay $650 per year to a nationally- or state-run program or use a private insurer for lower premiums.
For Moderate and Low Risk Areas
Not living in one of FEMA’s high-risk zones doesn’t preclude your property from experiencing flood damage. In fact, 20 percent of National Flood Insurance Claims filed and one-third of all Federal Disaster Aid for flooding originate outside of high-risk areas.
In Connecticut, areas away from the Shoreline may be prone to floods for the following reasons:
- River and flash flooding, often resulting from a storm.
- Seasonal changes resulting in flooding. In this state, late winter into early spring, late summer and early fall, and early winter periods have been known to see flooding.
What can you do? While insurance is not required, you can still take out a small policy to prepare for the risk. It’s advised to get an estimate for potential damage inside your home or business, and then to seek out coverage from there.
To supplement your homeowners insurance policy with flood coverage, explore your options with Ion Insurance. Contact any of our locations to speak with an agent.