Things You Should Know About Flood Insurance

You may think you only need flood insurance if you live in an area by the water. You don’t have to live on or by the shore to be in a flood zone. In fact, flood zones are everywhere, including landlocked subdivisions. An estimated 41 million Americans live in flood zones all across the country. Therefore, it is essential to be prepared before a flood with the proper amount of insurance. Here are the things you should know about flood insurance before talking to your agent.


Binding Suspension

Purchasing flood insurance usually comes with strict rules. This is so there isn’t a rush of policy purchases in the middle of the storm. When shopping for flood insurance, you’ll be told of your agency’s “binding suspension rule”. A binding suspension rule exists for most flood insurance policies. They are usually worded something like this:

No application for new coverage or endorsement for increased coverage may be bound, written or issued, or monies received, regardless of effective date, when a tropical depression, tropical storm, hurricane watch, or hurricane warning has been issued by the National Weather Service.”

All this fancy wording means is that you can’t increase your coverage when a tropical storm or hurricane is known to be on its way. For this reason, it’s critical to get adequate coverage before unexpected weather hits.

Waiting Periods

When you purchase flood insurance there is a 30-day waiting period before any damage is covered. Once this waiting period is complete your policy “starts”.


Whether you live in a flood zone or near one, it’s time to purchase flood insurance. And it is best to do it now instead of waiting for the next storm. If you’re unsure what you need, our experienced agents can help you out and walk you through the process. Give us a call today to get your policy in place.