Congress created the National Flood Insurance Program (NFIP) in response to the rising cost of taxpayer funded disaster relief for flood victims and the increasing amount of damage caused by floods. The NFIP makes federally-backed flood insurance available in communities that agree to adopt and enforce floodplain management ordinances to reduce further flood damage.

In addition, the National Flood Insurance Program's Community Rating System rewards community floodplain management activities that exceed program standards with flood insurance premium discounts for that community.

Buying Flood Insurance

To buy a flood insurance policy, call your insurance agent or contact one of the Write Your Own companies, which are private insurance companies that write flood insurance under special arrangement with the Federal government. If your agent does not write flood insurance or you don't have an agent, you may call the National Flood Insurance Program's toll free number to obtain the name of an agent in your area. The number is 1-888-FLOOD29.

It's a good idea to have the same agent who writes your homeowners or other insurance policies also write your flood insurance policy so that in the event you need to file a claim, you only have to work with one insurance agency.  If you need to file a claim, it is best to wait until the flooding is over.  This will allow you to list all of the damages at one time so only a single deductible needs to be paid.  Check with you insurance agent.

You can pay for your flood insurance in similar ways to paying other insurance - in full, by the month, by cash, check, money order, or credit card. In addition, you can also pay premiums through an escrow account established by your mortgage lender, as you do for other types of insurance or taxes.

Facts about Flood Insurance

1. There are times when you are required to purchase Flood insurance

   • If you buy a house in a designated special flood hazard area and receive a mortgage loan from a federally regulated lender, your lender must require that you buy flood insurance
        • If a high-risk area is determined after you buy a house and you receive a mortgage loan from a federally regulated  lender, you lender must require that you buy flood insurance
        • If refinancing or borrowing money to build, repair, reconstruct, or improve a structure in a special flood hazard area, your lender must require that you buy flood insurance

2. Flood damage is not covered by homeowners policies

   • You can protect your home, business, and belongings with flood insurance from the National Flood Insurance Program

   • You can insure your home with flood insurance for up to $250,000 for the building and $100,000 for the contents

3. You can buy flood insurance no matter what your flood risk

   • It doesn't matter whether your risk is high, medium, or low, you can buy flood insurance as long as your community participates in the National Flood Insurance Program

   • It's a good idea to buy even in low or moderate risk areas: almost 25 percent of all flood insurance claims come from low-to-moderate risk areas

4. There is a low-cost policy for homes in low-to-moderate risk areas

   • The Preferred Risk Policy is available for just over $300 per year and covers $250,000 for your residence and $100,000 for contents.  For more information and lower coverage rates go to  http://www.floodsmart.gov/floodsmart/pages/prp.jsp

   • A non-discounted flood insurance policy for $250,000 structure and $100,000 contents, in a special flood hazard area, costs $2,462 a year. If your residence resides in a special flood hazard area and all elevation criteria have been met it may be possible to remove the structure from the special flood hazard area thus allowing you to be eligible for the Preferred Risk Policy rates. This is best done during construction if possible. If you have any questions please call the Flood Control District at (928) 757-0925 or check with a local Arizona State Registered Engineer

5. Flood insurance is easy to get

   • You can buy NFIP flood insurance from private insurance companies and agents

6. Contents coverage is separate, so renters can insure their belongings too

   • Up to $100,000 contents coverage is available for homeowners and renters

   • Whether you rent or own your home or business, make sure to ask your insurance agent about contents coverage. It is not automatically included with building coverage

7. Up to a total of $1 million of flood insurance coverage is available for non-residential buildings and contents

   • Up to $500,000 of coverage is available for non-residential buildings

   • Up to $500,000 of coverage is available for the contents of non-residential buildings

8. There is usually a 30-day waiting period before the coverage goes into effect

   • Plan ahead so you're not caught without flood insurance when a flood threatens your home or business

9. Federal disaster assistance is not the answer

   • Federal disaster assistance is only available if the President declares a disaster

   • More than 90 percent of all disasters in the United States are not President declared

   • Flood insurance pays even if a disaster is not declared

10. You can buy flood insurance immediately before or during a Flood

    • You can purchase flood insurance at any time

    • There is a 30-day waiting period after you've applied and paid your premium

    • There is a 1-day waiting period if the initial purchase of flood insurance is made during the 13-months following a revised flood mapping for a community

    • The policy does not cover a "loss in progress"

11. You can buy flood insurance if your property has been flooded

    • You are still eligible after your home, apartment, or business has been flooded

12. The NFIP does offer basement coverage

    • The NFIP defines basement as any area of a building with a floor that is below ground level on all sides

    • Flood insurance covers structural elements, essential equipment, and other basic items normally located in a basement

    • Flood insurance does not cover finished walls, floors, or ceilings, or personal belongings kept in the basement

13. It makes a difference when your house was built

    • Buildings that were constructed prior to the date of the community's first Flood Insurance Rate Map (FIRM) pay an insurance premium based on chargeable rates that are subsidized by tax dollars.

    • Buildings that were built or substantially improved after the issuance of a FIRM are charged actuarially sound insurance rates that fully reflect the building's risk of flooding