Why You Need Flood Insurance Even in a Low-Risk Zone

Why You Need Flood Insurance Even in a Low-Risk Zone

Even if you don’t live in a high-risk flood zone, choosing not to purchase flood insurance in NJ could be a big mistake. Floods can happen anywhere, and a standard homeowners policy doesn’t cover flood-related damage. That can mean expensive out-of-pocket repairs for you.

What’s Your Risk?

You may have heard that flood insurance in NJ isn’t necessary if you live in a low- or moderate-risk zone, but lower risk doesn’t mean no risk. In fact, over 25 percent of federal flood insurance claims come from areas that are not in a recognized flood plain.

Don’t Live Near the Shore or a River? How Can There Be a Flood?

Wherever it rains there is flowing water, and even a moderate amount of runoff can lead to localized flooding. Some sources of flood-related damage include:

  • Clogged or overflowing storm drains
  • Mudslides caused by sustained rainfall
  • Flash flooding from sudden heavy rains
  • Sewer or septic system backup

What Does Your Insurance Cover?

Typically homeowners insurance provides coverage for most water damage caused by falling rain. It does not cover losses resulting from flowing surface water, sewage or mud, which could leave you with a hefty bill for cleanup and repairs. Flood insurance in NJ can offer financial security and peace of mind and should be considered a necessary supplement to a standard homeowners policy.