Flood Insurance

The National Flood Insurance Program (NFIP) has been around since 1968 and has helped thousands of property owners financially protect themselves from floods. Flood insurance is offered to homeowners, renters, and business owners that live in areas that abide by the NFIP’s ordinances. These communities agree to meet the standard requirements of the Federal Emergency Management Agency (FEMA) to reduce the risks of major damages during floods. It’s important to find out if your community participates with the NFIP.

Flood Insurance Coverage

Flood insurance protects building and contents. It does not cover the land.

The two most common reimbursement methods for flood claims are:

  • Replacement Cost Value (RCV) is the cost to replace any damaged property and is reimbursable to owners of single-family homes that are insured at 80% or more of the buildings replacement cost.

  • Actual Cash Value (ACV), by contrast, is determined by the RCV at the time of loss, minus physical depreciation. Your personal property is always valued by the ACV.

  • In terms of affordability, ACV will almost always be cheaper. However, most people opt for RCV, as this coverage doesn’t depreciate with time.

For more information, visit FloodSmart.gov