Many areas have experienced heavy rains recently and some homeowners might be wondering if they need flood insurance.  After all, hurricane season starts next month.  You might assume your homeowners insurance covers flooding.  Most of the time, this is not true.


Some homeowners might also assume that federal disaster assistance will be available if their homes flood.  This is also not the case.  Federal disaster assistance generally is a low interest loan to help cover flood damage, but is does not necessarily cover your losses.  Keep in mind, these loans are only available if the president formally declares a disaster.  This loan must be repaid.


If you live in area that has a relatively low risk of flooding, you might consider flood insurance.  Your rates may be very affordable and you are eligible.  Flooding does occur in low risk areas.  Poor drainage and rapidly accumulating rainfall are just two reasons for flooding.  Some mortgage lenders may require flood insurance even if you are in a low risk area.


Flood insurance is mandatory for buildings in high-risk flood areas.  You can contact your insurance agent or company to found out more information about flood insurance.  According to the National Flood Insurance Program (NFIP), many private insurance companies offer Excess Flood Protection.  This policy provides limits above those offered by the NFIP.