Flood Insurance
Did you know that homeowners’ insurance typically excludes coverage for floods? Indeed, flooding is the most prevalent natural disaster. Yavapai County frequently faces flash floods, often triggered by monsoonal weather and localized storms. It’s crucial for property owners to be aware of their flood protection and insurance options. especially with the recent implementation of the National Flood Insurance Program’s (NFIP’s) new rating methodology.
If your home or business is located in a high-risk flood area (known as a Special Flood Hazard Area or SFHA) and you have a loan through a federally regulated or insured lender, you will be required to carry flood insurance. If you do not have a loan, you are strongly encouraged to carry coverage. These areas have at least a 26 percent chance of flooding over a 30-year period, and most homeowners insurance policies do not provide coverage. If you live outside a high-risk area, the risk of flooding is still there; it is just reduced, not removed. Nearly 30 percent of all flood claims in Arizona occur in these areas and the average flood claim in Yavapai County since 1978 has been over $96,000.
Flood insurance is available to all communities who participate in the federally sponsored National Flood Insurance Program (NFIP). FEMA manages the NFIP, which makes federally-backed flood insurance available in communities that agree to adopt and enforce floodplain management ordinances to reduce future flood damage. Yavapai County is a participating community in the NFIP. It also a participates in FEMA's voluntary Community Rating System (CRS). The CRS program recognizes communities for exceeding the minimum NFIP guidelines. Yavapai County is currently at a CRS Class 7 designation. As a result, policyholders in the county receive a 15% reduction on flood insurance premiums for all homes and businesses.
The NFIP has introduced a new quoting tool. In under 10 minutes, you can receive a quote and connect with an agency to purchase flood insurance. The following factors influence the cost of your flood insurance under the new rating methodology:
- Property flood risk
- Type of coverage being purchased (e.g., building and contents coverage)
- Deductible and amount of building and contents coverage
- Location of your structure
- Design and age of your structure.
- Location of your structure’s contents (e.g., whether your utilities are elevated)
Most flood insurance policies do not cover contents. Therefore, you may want to consider adding supplemental coverage to protect your furniture, carpets, and appliances from damage. It's essential to plan ahead, as there is usually a 30-day waiting period for an NFIP policy to take effect.
How to lower premium costs through mitigation:
- Elevate utilities.
- Install flood openings.
- Fill in the basement.
- Elevate your property.
- Relocate your home out of the risk area.
Yavapai County has several projects underway to update the County’s flood maps, known as Flood Insurance Rate Maps (FIRMs). Map changes result in a better understanding of the risk for property owners, and it can affect flood insurance rates.
The following links include the latest insurance and project information. The Flood Hazard Mapper tool is an interactive map that allows property owners to see the current floodplain on their property. By turning on the layer, “Changes Since Last FIRM,” property owners can see if the extent of the high-risk Special Flood Hazard Area on their property will be adjusted. Once the change in flood risk is known, property owners are encouraged to call their insurance agents to find the best flood insurance options for them. Even if there is no change and a home or business remains in the moderate-low risk area (e.g., Zone X), flood insurance is strongly recommended. About 1 out of 3 flood claims in Arizona occur in these moderate-low risk zones.
For more information on flood insurance, talk with your insurance agent or
visit: www.FloodSmart.gov.
Current and previous editions of the Flood Insurance Manual
Is your property in a floodplain?