Facts about Deductibles FLOOD INSURANCE
The minimum available deductibles for a flood
insurance policy are $1,000, which applies separately
Flood Insurance to the dwelling and contents. These deductibles
indicate that no covered loss of $1,000 or less will
• A homeowners policy does not cover flooding. be paid. You may carry higher deductibles thereby
• Everyone lives in a flood zone. reducing your premium.
• You don’t need to live near water to be The deductibles may be increased during the policy
flooded. Floods are caused by storms, melting term, but cannot be decreased except at renewal.
snow, hurricanes, and water backup due to Some mortgage companies will not accept the higher
inadequate or overloaded drainage systems, deductibles, so be certain your mortgage company
dam or levee failure, etc. knows about any change you plan to make.
• You can buy Federal flood insurance if your Policy Fee
community is one of over 19,000 communities The initial premium and all renewal premiums include a
participating in the National Flood Insurance policy fee which is mandated by FEMA for operating
Program (NFIP). expenses. This policy fee is displayed separately on the
• AFI is an agent for one of the largest flood policy declaration page.
insurance servicing companies in the program. OUR MISSION IS YOU.
Call 800.524.9329
for the right answers
FLOOD
from a real person. INSURANCE
email: flood@afi.org
online: www.afi.org
550 Eisenhower Road, Leavenworth, KS 66048
www.afi.org
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FLOOD INSURANCE
The flood insurance policy defines flood as a general Insurance Amount
and temporary condition of partial or complete To allow the most favorable settlement in the event of
inundation of two or more acres of normally dry land a loss, it is recommended that you insure your dwelling
area or two or more properties (at least one which is for its rebuilding cost or for the maximum amount of
your property) from: flood insurance available.
• The overflow of inland or tidal waters.
Building Coverage
• The unusual and rapid accumulation or runoff of Coverage applies primarily to residential buildings
surface waters from any source.
and condominium units designed for principal use as a
• Mudflow. dwelling place.
There is limited basement coverage
Restrictions and requirements concerning You can apply up to 10% of your dwelling coverage to
For flood insurance purposes, a basement is
a detached garage. This is not an additional amount
the application for flood insurance: defined as: Any area of a building which has its
of insurance. It does not apply if the garage is used
• Neither the insurance company nor agent is floor subgrade (below ground level) on all sides.
for dwelling purposes (such as an apartment over the
authorized to bind coverage. garage) or for manufacturing or farming purposes or as Loss Settlement
• Federal flood insurance regulations require a a boathouse. If you live in the insured home as your primary
30-day waiting period after presentment of full
If you have a structure other than a garage on your residence (at least 80% of the year), Building loss
premium before coverage begins, unless the flood
property, you will need to consider a separate flood settlement would be based upon replacement cost
insurance is obtained in accordance with a new
loan closing. policy to provide coverage for that building. for flood loss to the structure, provided you are
insured to 80% or more of the full replacement
• Please note, a policy condition states that no Contents Coverage cost of the dwelling at the time of the loss (or
refund of any part of the premium payment will Flood coverage for your contents is a separate part of the maximum amount available), but only on
be made if the flood policy is cancelled while you
the flood policy. We encourage you to purchase this the amount of flood coverage you carry on the
retain an interest in this property.
portion of the policy. structure, or the maximum amount available.
• Credit card payments are accepted for new issues,
Again, your homeowner contents coverage will not If you carry building coverage less than 80%
renewals, and mid-term changes.
cover your contents in the event of a flood. replacement coverage or if your home is rented
Renewal premiums will be billed directly to you (or or occupied only occasionally, loss settlement
your mortgage company if you specify) by our flood Flood Policy Exclusions would be paid on the basis of actual cash value
servicing company and not through AFI. The Policy does not cover: which is the amount needed to repair or replace
• losses already in progress on the effective date of the damaged property minus a deduction for
Did you know?… the policy depreciation.
• damage which results solely from causes at the Claim payment will not exceed the amount of
Before most forms of Federal disaster assistance are
offered, the President must declare a major disaster? location of the insured property coverage that is listed on your declarations page.
• causes within the control of the insured All contents losses are settled on the actual cash
People living in floodplains are four times more
likely to have a flood than a fire during their • Additional living expenses value basis.
30 year mortgage?
Specifically excluded from coverage are: outdoor
You can buy flood insurance no matter where you landscaping, trees, shrubs, lawns, patios, pavements,
live—in high, low, or moderate risk-free areas—as decks, pools, fences, swimming pools, retaining walls,
long as your community participates in the NFIP.
seawalls, bulkheads, wharves, piers, bridges and docks.