Flood Insurance
Why Do I Need This Insurance?

What's My Flood Risk?

Did you know everyone lives in a flood zone?¹ You don't need to live near water to be flooded. Approximately 25 percent of flood losses occur in low to moderate risk areas.² Would your home or business be protected in the event of a flood?

It doesn't matter whether your flood risk is high, medium, or low, you're eligible for Flood Insurance as long as your community participates in the National Flood Insurance Program. Given that most Homeowners, Condominium, Mobile Home, Renters, or Business Insurance Policies exclude flood coverage, a Flood Insurance Policy can help protect the most valuable asset you own: your home or your business.

What is a Flood?

A flood is defined by the National Flood Insurance Program as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is the policyholder's property) from:

• Overflow of inland or tidal waters; or
• Unusual and rapid accumulation or runoff of surface waters from any source; or 
• Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above; or
• Mudflows³

Leveled forests, overbuilt land, and an increased use of asphalt have reduced the soil's natural ability to absorb excess water, compounding the risk of disastrous flooding.

Why Can't I Rely on Federal Disaster Assistance?

What if there's a serious flood in your area? Don't rely on Federal Disaster Assistance alone. Less than 50 percent of all flooding incidents are awarded a Federal Disaster Assistance declaration. If the President declares a Federal Disaster Area, most disaster assistance is provided in the form of a loan that must be repaid - principal plus interest.

Some Important Facts About Federal Disaster Assistance

• The average individuals and Household Program (IHP) award is around $4,000.
• The duration of a Small Business Administration (SBA) disaster home loan is approximately 30 years.
• Repayment on a $50,000 SBA residential disaster home loan is $240 a month, or $2,880 annually.⁴

What's the Advantage of Flood Insurance Protection?

If you experience a flood, your claim will be paid by your Flood Insurance Policy with no payback requirement like there would be for a Federal loan.

• Flood Insurance reimburses homeowners for all covered losses up to $250,000 for the building and $100,000 for contents.
• For businesses, Flood Insurance will pay up to $500,000 for the building and $500,000 for the contents.
• For renters, Flood Insurance will pay up to $100,000 for personal belongings.⁵

An Important Fact About Flood Insurance

Depending on where you live, the average cost of a $100,000 Flood Insurance Policy is $500 annually, or less than $42 per month.⁶

Here's Another Way to Look at Flood Insurance Costs:

The average annual premium for $100,000 of Flood Insurance coverage is less than 1/5 of the average annual payment for a typical $50,000 disaster home loan.⁷

Allstate Participates in the National Flood Insurance Program (NFIP)

Would your home or business be protected in the event of a flood? If your community is a participant in the National Flood Insurance Program (NFIP), you have the opportunity to purchase National Flood Insurance coverage from an Allstate agent.

Excess Flood Insurance Coverage May Be Available

Are you sure you're covered for any flooding event that may occur? In some states, if you purchase National Flood Insurance through Allstate and find you need more coverage than the maximum limit provided by the NFIP program, you may be eligible to purchase additional coverage through an Excess Flood Insurance* Policy from your Allstate agent.

What's Preferred Risk Flood Insurance Coverage?

A Preferred Risk Flood Policy is designed for homeowners with properties located in low to moderate flood hazard areas who want to help protect their home and contents in the event of a flood. In order to qualify for a Preferred Risk Flood Policy, you need to own a one-to-four family dwelling in a low to moderate flood hazard area that meets certain requirements.

If your dwelling’s flood loss history falls into any of the categories below, a Preferred Risk Policy cannot be written. These requirements apply since the date of construction and regardless of your dwelling’s prior ownership:

• Two loss payments, each more than $1,000.
• Three or more loss payments, regardless of the amount.
• Two Federal Disaster Relief payments (including loans and grants), each more than $1,000.
• Three Federal Disaster Relief payments (including loans and grants), regardless of the amount.
• One flood insurance claim payment and one flood disaster relief payment (including loans and grants), each more than $1,000.⁸

What's Covered By a Preferred Risk Policy?

A Preferred Risk Policy provides the same coverage as a standard Flood Insurance policy: your building's structural elements can be insured up to $250,000 and the contents of your home can be insured up to $60,000.⁹

Some Important Facts About Preferred Risk Flood Coverage

• The cost of a $100,000 Preferred Risk Flood Insurance Policy is $263 annually, or about 72 cents per day.
• The cost of a $50,000 Preferred Risk Flood Insurance Policy is $205 annually, or about 56 cents per day.¹⁰

Make sure to check with your local Allstate agent to determine your community's eligibility for Flood Insurance and visit our National Catastrophe Center for valuable flood preparation and recovery tips.

Learn more about Home Insurance in Tools & Resources.