How to Adjust to Flood Map Changes

Every property, regardless of its location, faces a flood risk. Many property owners wonder how their insurance policies cover flood damages.

The thing is that most property insurance policies don’t cover flood damages. Most policyholders have to buy separate flood insurance policies to cover their property. Flood insurance policies provide valuable coverage to those with high risks of floods.

Redefining Flood Risks

The Federal Emergency Management Agency (FEMA) works to define flood risks that a property faces. Part of this process includes periodically redrawing flood maps. Flood maps use a variety of statistics like elevation, precipitation, erosion and soil types to define how likely a home is to experience a flood.

Flood maps categorize flood risks in three levels—low, moderate and high. FEMA is currently changing this area’s existing flood maps. Those flood map changes could affect homeowners. You could see your flood risk increase or decrease. For that reason, your need for appropriate flood insurance may change. Make sure you adjust your policy as necessary.

Changing Risks and Changing Rates

When flood maps change, you may have to buy flood insurance, even if you’ve never had it before. You may also have to adjust your existing coverage to a more appropriate level. Your risk levels may increase, decrease, or stay the same.

• If your flood risk is increasing, you must adjust your insurance policy. If new flood maps classify your risk level as high, you likely now have to carry a flood insurance policy.
• If your flood risk is decreasing, you may have the option to reduce the policy to better suit your new level of need. However, it is a good idea for you to keep your flood insurance policy. Don’t try to drop the coverage altogether.

Depending on how your coverage changes, you may experience cost adjustments to your policy. The rate may increase or decrease. However, you may be able to keep or gain discounts that can help you meet insurance costs.

Talk to your insurance agent. He or she can help you understand your flood insurance risks. Your agent can educate you on the type and amount of coverage your property needs.