Floods are one of the most common and costly natural disasters in the United States.
According to the National Flood Insurance Program (NFIP), the average flood claim in 2019 was over $52,000. Floods can damage your home, your belongings, and your personal safety.
That’s why it’s important to have flood insurance to protect yourself from the financial impact of a flood.
However, many homeowners may not realize that their standard home insurance policy does not cover flood damage.
To get flood insurance, you need to purchase a separate policy from the NFIP or a private insurer, such as Allstate.
Understanding Flood Insurance
- Protect your property and belongings from flood damage with flood insurance. This coverage is essential for safeguarding against the specific risks posed by flooding events.
- Distinguish flood insurance from water damage coverage – flood insurance specifically guards against losses resulting from flooding, not other water-related incidents like burst pipes or leaks.
- NFIP defines flooding as the temporary inundation of land or properties from various water sources. Flood insurance exclusively addresses these conditions, offering essential protection for property owners.
- While not mandatory for all homeowners, flood insurance might be required by your mortgage lender, especially if you reside in a high-risk flood zone. It’s a key consideration for securing your property.
- Even in low or moderate flood risk areas, opting for flood insurance is wise. Over 20% of flood claims originate from these zones, emphasizing the importance of comprehensive coverage for all homeowners.
- In the event of a flood disaster, having flood insurance can significantly expedite and enhance your recovery process. Ensure your property is well-protected with this valuable coverage.
Caption; Freepik
Allstate Home Insurance
- Overview of Allstate:
- One of the largest and reputable insurance companies in the U.S.
- Offers various insurance products: auto, life, renters, and home insurance.
- Allstate Home Insurance:
- Standard policy covering dwelling, personal property, liability, and living expenses.
- Protects against perils like fire, theft, vandalism, wind, hail, etc.
- Excludes coverage for flood damage.
- Flood Insurance with Allstate:
- Separate policy needed for flood coverage.
- Allstate is an authorized agent of the NFIP (National Flood Insurance Program).
- NFIP Coverage Details:
- Federal program for flood insurance in participating communities.
- Set rates and coverage limits for policies (building and contents coverage).
- Building coverage includes structure, foundation, plumbing, electrical systems, appliances.
- Contents coverage includes personal belongings (furniture, clothing, electronics, valuables).
- NFIP offers up to $250,000 for building coverage and up to $100,000 for contents coverage.
- Private Flood Insurance with Allstate:
- Allstate offers private flood insurance policies not part of the NFIP.
- Issued by private insurers, providing potential advantages like higher limits and lower deductibles.
- May have different rates and eligibility criteria than NFIP policies.
- Suitable for homeowners seeking more coverage or flexibility than NFIP policies.
Flood Insurance Coverage Area
Flood insurance safeguards your property and belongings within your policy’s coverage area from flood damage.
This area encompasses where your property is situated and where the flood originates. For instance, if your property is in Florida and the flood results from an Atlantic Ocean hurricane, your insurance covers it.
However, if the flood originates from a non-covered area like a river in Georgia, coverage is excluded, unless the river is a tributary within the coverage zone.
Beyond the coverage area, flood insurance doesn’t protect your property. For example, if a flood from a Michigan lake affects your Florida property, it won’t be covered.
Yet, if the flood comes from a Florida lake within your coverage area, your property is protected.
Additionally, flood insurance doesn’t extend protection to events before or after the policy period. Renewal before a flood is necessary for coverage after the policy period ends.
There’s a 30-day waiting period for coverage to begin, unless you renew within 13 months of a flood map revision or within 30 days of a lender’s requirement.
Flood Insurance Cost
The cost of flood insurance hinges on various factors, including the chosen policy type, coverage amount, property location, assigned flood zone, property elevation relative to the base flood elevation (BFE), selected deductible, and eligibility for discounts like flood alarms or elevation certificates.
The policy type can be either from the National Flood Insurance Program (NFIP) or a private policy.
According to NFIP data, the average annual premium for their policies in 2020 stood at $742, although this figure is a general average and the actual cost depends on individual circumstances.
For an accurate NFIP quote, individuals can utilize the NFIP’s online tool or consult with an Allstate agent.
Private policy quotes can be obtained by contacting an Allstate agent or visiting their website, with costs determined by specific factors such as property features and chosen coverage.
Benefits of Allstate Flood Insurance
Allstate flood insurance has several benefits that can help you protect your property and your finances from the impact of a flood. Some of the benefits of Allstate flood insurance are:
Allstate, since 1931, excels with an A+ rating, offering NFIP and private flood policies for tailored coverage.
Allstate’s skilled agents navigate flood risks, ensuring swift claims and personalized coverage insights.
Enjoy 24/7 support and online policy management via Allstate’s customer service and claims center.
Maximize savings with Allstate’s discounts for bundling policies and implementing safety measures in flood-prone areas.
Allstate Flood Insurance availability by state
Based on online search results, Allstate flood insurance appears to be accessible in all 50 U.S. states and Washington, D.C. Nevertheless, the availability might differ based on the state and the chosen policy type.
Allstate provides two flood insurance options: one through the National Flood Insurance Program (NFIP), a federal program managed by FEMA, and another through National General, an Allstate-affiliated private flood insurance provider.
The NFIP policy has maximum coverage of $250,000 for the structure and $100,000 for contents, while the National General policy offers up to $1.5 million for the structure and $750,000 for contents, along with additional benefits and a shorter waiting period.
While the NFIP policy is accessible nationwide, the National General policy is limited to certain states.
For detailed information on coverage, benefits, and limitations, you can refer to the Allstate website or contact an Allstate agent. Additional resources on flood insurance, safety, and risk assessment can be found on the Allstate website and Policygenius.
Allstate NFIP flood insurance compared to National General Beyond Floods
Coverage limits: The NFIP policy provides a maximum payout of $250,000 for the structure and $100,000 for contents, whereas the National General policy offers a higher coverage of $1.5 million for the structure and $750,000 for contents.
Displacement costs: Unlike the NFIP policy, which does not cover living expenses during home repairs post-flood, the National General policy includes up to $10,000 for displacement costs.
Waiting period: The NFIP policy enforces a 30-day waiting period before coverage kicks in, whereas the National General policy has a shorter 14-day waiting period.
Deductibles: NFIP’s minimum deductible is $1,000 for the structure and contents, with a maximum of $10,000.
In contrast, the National General policy has a lower minimum deductible of $500 for both structure and contents, without a maximum limit.
Basement coverage: NFIP covers a limited amount of basement items, while National General offers coverage up to $10,000 for belongings stored in the basement.
Pool refill and repairs: NFIP doesn’t cover pool refilling or repairs, while the National General policy includes up to $5,000 for these expenses.