Q: What is the definition of a flood?

A: A flood is defined by the National Flood Insurance Program as a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow.

Q: When is flood insurance required?

A: Congress mandated federally regulated or insured lenders to require flood insurance on properties that are located in areas at high risk of flooding.

Q: Does general liability insurance cover floods?

A: No but sometimes flood insurance is built into an HOA’s Earthquake policy.

Q: Where can you buy flood insurance?

A: Homeowners can buy it through the National Flood Insurance Program (NFIP) or another administered carrier. This coverage is offered through the individual homeowner’s insurance carrier however losses will be paid for by NFIP.

Associations can buy flood insurance through a program offered by Coastal Insurance. The cost is $750 for $250,000 in coverage. It’s important to know that properties located in a federally designated flood zone will not qualify for this coverage as separate coverage is required for these properties.

Q: What does flood insurance cover?

A: For homeowners the policy is designed to cover the interior of the unit that the owner is required to repair per the HOA’s CC&Rs including flooring and other fixtures such as cabinetry and appliances. It will also cover the personal contents of the owner. Depreciation will be deducted from payouts on personal contents.

Coverage for the Association will include repairs to the building and contents. Building coverage includes the building and its foundation, the electrical and plumbing system, AC equipment, furnaces, water heaters and flooring. Contents coverage includes furniture, electronic equipment and curtains etc.

Q: Is there a waiting period after you purchase flood insurance?

A: Generally, there is a 30 day waiting period after the date of purchase before the policy goes into effect.