Historic rainfall hit many areas of Washington state in November, bringing massive flooding and catastrophic landslides to the region. In Whatcom County alone, hundreds of residents were displaced due to the floods, and officials estimate the damage costs could reach $50 million. Record-setting weather events like the “atmospheric river” that hit Washington last fall are becoming increasingly more commonplace, bringing with them devastating flooding and destruction. 

Flooding can happen anywhere at any time. According to FEMA, in high-risk areas, there is at least a one-in-four chance of flooding during a 30-year mortgage. Although you may not expect your home or property to flood, it’s important to be prepared and protect yourself before you fall victim to an unexpected disaster. Floods can be caused by poor drainage systems, storms, melting snow, neighborhood construction and broken water mains. Just one inch of water in a home can cause more than $25,000 in damages, so having flood insurance could be the difference between safety and recovery and total financial devastation.

What to Know About Floods and Flood Insurance

Most insurance companies define a flood as an “inundation of water from the sky or ground, including mudflow.” Per FEMA, causes of flooding could also include:

• Overflow of inland or tidal waters; 
• Unusual and rapid accumulation or runoff of surface waters from any source; or
• Collapse or subsidence (gradual settling or sudden sinking) of land along the shore of a lake or a similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.

It’s important to be aware, flooding is NOT covered under a standard homeowners, condo, renters/tenant, landlord/rental property, or second home insurance policy. You must purchase a separate flood insurance policy to cover damages specifically caused by any of the above, as well as rebuilding costs after flooding occurs.

Here’s something else most people don’t realize: Small water leaks that have persisted for a while are also not covered under standard homeowners or similar insurance policies. So, for example, if you have a faucet or pipe that’s leaking inside or outside your home or property, and the insurance company can prove that it was a persistent leak over time, that means related damages, repairs, and any personal expenses you may incur if you’re displaced from your home won’t be covered under standard homeowners or similar policy, nor will they be covered under a flood insurance policy. That’s why it’s important to have your pipes and faucets inspected regularly for leaks and other damage, especially in winter, when pipes are more likely to freeze and possibly burst.

Flood insurance is funded through a federal program called the National Flood Insurance Program (NFIP), established by the National Flood Insurance Act of 1968. FEMA is the primary source for NFIP, and is the entity that assists policyowners during a flood and the insurance claims process. FEMA and the NFIP also determine national flood mapping and decision-making for specific flood zones. 

Purchasing Flood Insurance

Typically, there is a 30-day waiting period between the time you purchase a flood insurance policy and when it kicks in (unless required by a mortgagee). That means it’s important to buy flood insurance well in advance, before you need it. 

Even if you live in an area that isn’t at high risk for floods, it may be a good idea to consider purchasing a flood insurance policy. You never know when an unexpected disaster may strike. According to FEMA and the NFIP, between 2014 and 2018, policyholders outside of high-risk flood areas filed more than 40% of all NFP flood insurance claims and required one-third of federal disaster assistance for flooding. 

In addition, if you are renting a property, although your landlord may have flood insurance on the building, their policy will not cover the items inside of your unit. In that instance, contents-only flood insurance can help provide the protection you need in the event of a flood. These policies are generally affordable and easy to obtain.

To learn more about flood insurance and find out how to purchase a policy that fits your needs, contact Jared Whaley, Director of Personal Lines Insurance at WTIA, at jwhaley@washingtontechnology.org.