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Many homeowners and business owners in California tend to overlook flood insurance. It is rare for California to experience heavy rainfall on a consistent basis. However, recent weather activity proves we are not immune to flooding.

The recent flooding was unexpected and devastating. Homeowners and business owners were all affected in various ways. Many of which can take time to fix. It is important for all residents to realize that flooding from natural weather conditions could happen again at any time.

Today we are going to discuss a few factors that revolve around flooding and various types of benefits that you will only receive from flood insurance.

How to buy flood insurance

There are two common flood insurance options for homeowners and business owners. The first option is the National Flood Insurance Program (NFIP). Unlike regular home or business insurance, the NFIP is a federally regulated program. The second option is a private flood insurance policy through a carrier like Lloyds of London.

Flooding through heavy rain and thunderstorms are out of our control. With these policies in place, you can rest assure that your investments will be properly covered.

To give you a glimpse of what you could look forward to in regards to the price ranges you may see, here are the policy options available through the NFIP.

Option number one covers personal property up to $100,000. Many homeowners in California buy this general option. The second option covers building property (including homes) for up to $250,000. If you believe you need more coverage from flood higher than $250,000 then you will have to seek a private company for excess flood insurance.

What is not covered in your flood insurance?

As stated earlier, flooding by heavy rain and thunderstorms are beyond our control. It is important to plan for the worst-case scenario. You should also be well aware of what is not covered in flood insurance for personal and/or business properties (whichever applies to you).

There are a variety of flooding from hot tubs and swimming pools that are not insured by flood insurance. Items such as cash, stock certificates, precious metals, and bearer bonds are not covered if damaged in floods. It is within your best interest to keep these items in a safe-deposit box in a bank.

In the worst-case scenarios, basements through the NFIP is very limited. When you become aware of a natural heavy rainfall situation is going to occur, please move your valuable investment out from the basement.

Benefits to having flood insurance

When you buy your flood insurance through the NFIP, there are some great benefits. When a flood occurs and damages your home, the NFIP can provide you up to $30,000 immediately depending upon the severity of damage. That money you can use to move, tear down, or properly elevate your home for the future.

Flood insurance is relatively affordable for personal homes and businesses. According to, the current average cost for a one-year premium in California is $600. This premium will cover your home and most assets appropriately (which is well worth it in the end).

Are you motivated to buy flood insurance for the future? Save yourself, your property, and your precious assets. It is always better to be safe than sorry with situations such as flood from heavy rainfall that you cannot control.