Flood insurance is especially important in California— we’ve already seen the effects of these devastating natural disasters early in 2023.  Rains lead to mudslides and you can only get mudslide coverage on the flood policy.

Here’s everything you need to know about this specialized coverage in California:

Do You Need It? 

Although not mandated in California, homeowners and renters insurance policies typically do not include flood coverage, which means damage to your possessions won’t be covered in a flood incident. Anyone living near bodies of water (dams, levees, rivers or lakes) or at a lower elevation should consider adding a flood insurance policy. It’s especially important in high-risk areas throughout the state.

Most flood policies also require that if you are filing a flood claim for damage, another property near your property has to also sustain damage.  If damage is to 1 home property only, certain flood policies would not consider this a flood by definition and there may be no coverage.  Ask your agent for more information.

What Does It Cover? 

This add-on insurance policy protects two types of insurable property: building and contents. A standard flood policy covers up to $250k on the building and $100k on personal property. If you’re in a high flood zone, it might be wise to purchase excess flood coverage, which would cover costs beyond the $250k and allow the homeowner to insure their property for the full replacement cost.

The flood company has a 30-day waiting period before a policy is issued after request.  You can’t hear on the news that bad rains are coming and then try and get a flood policy.  You will have to wait 30 days before coverage effects.

How Much is Flood Insurance? 

The average cost in California sits at about $500 per year, but prices can range anywhere from $400 up annually depending on the area you live.  Homes on the beach or homes that are built on posts, piers or pilings, are in danger and should look into a quote.  Prices are calculated based on your home’s location, age, size, construction type and elevation, as well as your policy deductible, the amount of coverage required and the insurance provider you work with.  Know your options before the flood happens.

Pro Tip: Cut costs by working with top-rated South Bay insurance services.

Coverage for Renters Insurance 

Flood coverage is available for renters through a FEMA program or private insurance company.  Adding a Flood policy would provide coverage to your contents only up to $100k— it does not include liability or coverage for additional living expenses, like with a homeowners policy. Learn more here.

Save Money with Our South Bay Insurance Services 

NHC Insurance Services is an independent insurance agency that specializes in creating customized insurance plans tailored to our client’s budgets and needs. We can help you save time and money while optimizing coverage that’s suited to you.

Visit our flood insurance page or contact us to learn more.