Flood Insurance

Flood Insurance


When the rain begins, you need to be prepared! Your home is your most expensive asset. It is important to protect your home from all potential disasters and that includes floods. Anywhere it rains or snows, there is a potential for a flood. Unfortunately, most homeowners do not find out that they should have flood insurance until it is too late. Because homeowners insurance policies do not cover floods, a separate flood insurance policy needs to be purchased. Call Algate Advisors for a flood quote on your home or business.

Common Flood Insurance Questions

Does my house have to be in a flood zone to be able to purchase flood insurance? 

Homeowners insurance does not typically cover floods.  You must purchase a flood insurance policy through FEMA or a private flood insurance company.  Any homeowner can purchase flood insurance for their home, however, the premium cannot be paid through your mortgage escrow account. You will need to pay the premium directly to your flood insurance company.

Who determines if my house is in a Special Flood Hazard Area?

FEMA determines which properties are zones are in a Flood Hazard Area and therefore, which homeowners should purchase flood insurance. You can contact FEMA or your local city or county government for more information regarding your specific property.

Do I have to purchase flood insurance through FEMA?

Recently mortgage companies have begun to accept flood policies written through private flood insurance companies. These companies are sometimes more affordable than policies through FEMA.  Talk with Algate Advisors if you would like to check the pricing from a private flood insurance company.

Is there a waiting period once I purchase flood insurance?

Most flood insurance policies have a 30-day waiting period before coverage goes into effect. Any damage from flooding during that waiting period will not be covered. If you need flood insurance for a loan closing, there is not typically a waiting period.

What is the difference between flood insurance and water backup/sewer coverage?

Water backup coverage is an endorsement that can be purchased on most homeowners insurance policies. It covers related losses, up to a specific limit, due to the backup of water or sewage through a drain or sewer line. It does not cover damage from floods or water that is seeping through the foundation of a building or home.  Flood insurance can be purchased as a separate policy. The NFIP defines floods 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.”


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Algate Advisors
Mooresville, IN 46158

(317) 858-9420