Since our beginning in 2008, our goal was to not only provide the best flood insurance solutions, but also to inform our customers on what flood insurance is, why it is needed, and how New Jersey Flood Insurance can help. Below you’ll find some answers to a few of our most frequently asked questions, including both the requirements and flood insurance coverages that are available in New Jersey.

1


What if my home and content value is more than $250,000?
Most private insurance carriers offer enhanced protection up to $10MM. You can also purchase excess coverage, which provides limits above those of the NFIP. For more information, contact us - we’d be happy to discuss your options to make sure you have the protection you need.

2


If I live in a moderate- to low-risk flood zone, should I still have flood insurance?
With about one in five flood insurance claims coming from a moderate- to low-risk area, it is strongly recommended to obtain flood insurance even though it is not required. With a moderate- to low-risk zone property,you may even qualify or the Preferred Risk Policy (a lower-cost flood insurance policy that provides building and contents coverage starting at $129 PER YEAR!
3


Why can't I buy flood insurance directly through the NFIP?
You can only purchase flood insurance through a general agent (such as New Jersey Flood) or your insurance agent. However, you cannot directly write your policy through the NFIP. If you’re interested in a NFIP policy or gaining access to a private carrier quote, contact us today – we’d be happy to help!
4


What is covered in a flood?
Flood insurance covers physical damage to your property and possessions (up to a certain limit depending on your policy). The attached document can be used as a guide for what is and is not covered to help you better understand your flood insurance policy.
5


What is considered a flood?
A flood is defined as two or more acres or two or more buildings (or homes) that are affected by water from the ground up – usually due to heavy rain, melting snow, river overflow, or extreme coastal conditions. Though river floodplains and coastal areas are the most vulnerable, it is possible for flooding to happen in areas with unusually long periods of heavy rainfall – typically over dry land. This is why it is important to carry flood insurance even if you do not live in a high-risk zone.

6


I thought my homeowners insurance covered flooding?
Most homeowners’ insurance policies do not include flood and earthquake coverage. While there are policies that cover additional risks, most homeowners’ insurance policies only cover damage caused by threats such as fire, windstorms, hail, lightning, theft or vandalism.
7


Why does my mortgage lender require me to buy flood insurance?
Homes and businesses in high-risk flood areas with mortgages or loans from federally regulated lenders are required to have flood insurance. While flood insurance is not federally required if you live in a moderate- to low-risk flood zone, it is still strongly recommended to carry flood insurance to protect your property and contents in case of a flood.
8


If a flood affects my home, won't the government help?
The President must declare the event as a disaster – and that doesn’t always occur. However, Federal assistance is not insurance, but a low-interest loan. FEMA gives an example that illustrates the loan process. Borrow $50,000 at 4% and you’ll pay about $240 a month for 30 years. And that amount is in addition to your mortgage.

9


Can anyone get flood insurance?
Yes! Everyone is eligible and it just depends on what zone and community you live in to qualify for the National Flood Insurance Program (NFIP). Private carrier options may be available for those who qualify or live in an area that does not participates with the NFIP.


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