SACRAMENTO, Calif. – A series of powerful storms throughout California continue to leave tens of thousands of residents vulnerable to flooding from heavy rainfall, flash floods, river-bank overflows, mudflows and heavy snow. With some communities getting their annual expected rainfall in less than a month, FEMA is urging property owners and renters to purchase a policy from the National Flood Insurance Program (NFIP) to protect their homes and personal property.
So far, over $26 million has been paid out for 489 NFIP claims (averaging about $53,000 per claim) for those Californians affected by the severe winter storms and flooding that took place from Dec. 27, 2022 to Jan. 31, 2023.
Paying insurance premiums is almost always a less costly alternative than taking out a loan to repair flood damage. Low-interest disaster loans from the U.S. Small Business Administration (SBA) are the primary form of federal help following a federal disaster declaration. As of mid-March, over1,500 homeowners and renters affected by the severe winter storms and flooding have taken out loans of more than $71 million.
Floods are the most common and expensive natural disaster in the U.S. One inch of floodwater can cause up to $25,000 of damage in a home. Unfortunately, most homeowners insurance does NOT cover flooding. Usually, the only way for homeowners, renters and businesses to be protected from the costs of flooding is with a policy from the NFIP, which is managed by the federal government and administered by the FEMA.
A flood insurance policy provides peace of mind and freedom from having to take on future debt. Homeowners and business owners are eligible to purchase flood insurance if their community is among the more than 20,000 communities participating in the NFIP. These include cities, boroughs, counties and other jurisdictions that manage development. Participating communities agree to adopt and enforce floodplain management ordinances to reduce future flood damage.
You don’t need to live in a floodplain to purchase a policy. In fact, as many as one-fourth of all NFIP claims come from areas NOT designated as high risk.
Policy rates are determined by many risk factors unique to your structure such as the type of foundation that your structure is built on, the distance to the nearest flooding source, the elevation of the structure above the ground and the amount of coverage needed. NFIP premiums in the state of California can cost an average of $500 to $1,000 a year.
The maximum coverage available for a residential building is $250,000 and $100,000 for contents. Non-residential, or commercial structures are eligible for maximum coverage of $500,000 on the building and $500,000 on contents.
Contact your insurance agent or visit FloodSmart.gov to learn more about your flood risk and flood insurance options. If you don’t have an insurance agent, you can visit Floodsmart.gov to locate providers in your area. Or call 1-800-427-4661.
There is a 30-day waiting period before new policies go into effect, so don't wait to obtain a policy.
To find out if your community participates in the NFIP visit the FEMA Community Status Book at https://www.fema.gov/cis/CA.html.
For more information on NFIP, see the following links:
- Answers to Questions About the NFIP (floodsmart.gov)
- National Flood Insurance Program Summary of Coverage (floodsmart.gov)
- Renters Infographic (floodsmart.gov)
- Flood Insurance for Homeowners: What's Covered? (floodsmart.gov)
Help protect your home or business against future disasters by visiting Mitigation assistance (sba.gov). Rebuilding stronger is within reach.