Why Colorado Homeowners Need to Consider Flood Insurance

Floods can happen almost anywhere, and recent events like the devastating floods in the Smoky Mountains serve as a sobering reminder of how unpredictable and damaging floodwaters can be. Did you know that your homeowners or landlord policy typically does not cover flood damage? This can be an unexpected and costly realization for many homeowners in Colorado. Whether you live near a river, in a low-lying area, or in a suburban neighborhood, flood insurance is essential for protecting your home from the financial burden of flood-related damage.

How to Determine Your Flood Risk

You might be asking, “How do I know if I’m at risk for a flood?” Here are some key indicators to assess whether you should consider flood insurance:

• Check the FEMA Flood Maps: These maps highlight areas at high, moderate, and low risk for flooding.

• Click HERE

• Consider Local Geography: Do you live near rivers, creeks, or areas with poor drainage? Homes located at the bottom of a hill or slope are particularly vulnerable to flooding, as rainwater can accumulate and flow downhill, overwhelming drainage systems and leading to potential flood damage.

• Recent Weather Patterns: If your area has experienced heavy rains or rapid snowmelt, you might be at higher risk.

Even if you’re not in a high-risk flood zone, around 20% of all flood claims come from outside these areas. In fact, according to FEMA, if you live in an area with low or moderate flood risk, you are five times more likely to experience a flood than a fire in your home over the next 30 years. For many, a National Flood Insurance Program (NFIP) flood insurance policy could cost less than $400 per year.

Are Floods Covered in Homeowners Policies in AZ, MT, or WY?

While homeowners policies in Colorado don’t automatically cover flood damage, it’s the same story in most other states, including Arizona (AZ), Montana (MT), and Wyoming (WY). In these states, as in Colorado, flood insurance must be purchased separately. Always check your policy to ensure you’re covered, or speak with our team today to clarify what protection you currently have.

NFIP vs. Stand-Alone Flood Insurance Policies

When it comes to flood insurance, homeowners have two primary options:

1. NFIP (National Flood Insurance Program): This is a government-backed program that offers flood insurance policies to homeowners across the country. NFIP policies are typically capped at certain coverage limits, and they are often a requirement for those in high-risk areas.
2. Stand-Alone Policies: These are private flood insurance policies that are available through various insurance carriers. Stand-alone policies can offer more flexibility and higher coverage limits compared to NFIP. With several carriers offering these policies, we can help you find a plan that better suits your home’s value and your coverage needs.

At The Mitchell Insurance Group, we have access to both NFIP policies and stand-alone flood insurance providers, giving you multiple options based on your risk and coverage needs.

Mortgage Requirements for Flood Insurance

In some cases, your mortgage company may require flood insurance if your home is in a federally recognized flood zone. This ensures that their investment is protected, but it’s also critical protection for your home.

Get Your Flood Insurance Quote Today

Flood insurance is easier and quicker to obtain than you might think. At The Mitchell Insurance Group, we can provide you with a flood insurance quote in minutes. Whether you’re looking for NFIP coverage or a stand-alone policy, we’re here to help you protect your home.

Contact us today to explore your flood insurance options and ensure you have the protection you need.