Overview
Since damages resulting from flooding are usually not covered under regular homeowner or business insurance policies, specific flood insurance policies are needed. Renters may also purchase contents coverage flood insurance. The National Flood Insurance Act of 1968 made affordable flood insurance possible through federally-subsidized programs. Property owners in Pima County may purchase flood insurance that will typically cover structures and their contents from losses due to flooding. Improvements such as fencing, walls, swimming pools, landscaping or small storage sheds, however, are usually not covered by this insurance.
If your home is in a federally-mapped floodplain and you finance it with a loan backed by the federal government, then flood insurance is mandatory. Even when not required by law, the District always recommends purchasing flood insurance. Many flood damaged structures are located outside of federally mapped floodplains. When you are planning to purchase a new home or property always confirm the floodplain status of the property before you purchase the property. You can do this yourself by contacting our office. Please note that real estate agents are only required to determine if a property is within a federally mapped floodplain, so if your realtor provides flood information to you, be sure to verify whether or not the realtor has determined if the property is impacted by local floodplains. Additional information on flood insurance can also be obtained from FEMA.
Flood Insurance &
The National Flood Insurance Program
What is the National Flood Insurance Program (NFIP)?
The NFIP is a federal program that enables property owners to purchase
flood insurance and is intended to curb escalating costs of repairing flood
damaged buildings and their contents. Until NFIP was enacted, this type of coverage
was generally not available from private-sector insurance companies.
Why was the NFIP established by Congress?
The United States Congress created the NFIP in response to an increasing
number of flood losses and the increasing cost of disaster relief that was
being borne by all taxpayers. For decades, the national response to flood
disasters was generally limited to constructing flood control works such
as dams, levees, sea walls, and the like and to providing disaster relief
to flood victims after a flood event. This approach did not reduce losses,
nor did it discourage unwise development in flood prone areas. To compound
the problem, property owners generally could not buy flood coverage from
private insurance companies. Building techniques to reduce flood damage
also were often overlooked.
The intent of NFIP is twofold: 1) to minimize future damage from flood events,
and; 2) to provide property owners with protection from flood losses through
an insurance program. Costs of the insurance are paid by those most in need
of, and potentially benefiting from, this protection.
How can I purchase flood insurance for my property?
Your regular homeowner's or business insurance policy probably does not cover losses
due to floods. However, because Pima County participates in the NFIP, you
can buy special flood insurance to cover your home and its contents from
flood damage. Contact your local insurance agent, or any licensed property
insurance agent or broker to obtain flood insurance coverage.
What types of property may be insured against flood loss?
NFIP coverage is available for all owners and occupants of insurable
property (a building and/or its contents) in a community participating in
the NFIP. Owners as well as renters may insure their personal property against
flood loss. Buildings in the process of being constructed, condominium associations,
and owners of residential condominium units may all purchase flood insurance.
Almost every type of walled and roofed building that is mostly above ground
and not situated entirely over water may be insured. In most cases, this
includes manufactured or mobile homes that are anchored to permanent foundations.
Travel trailers, converted buses or vans, however, are typically not covered.
As with other structures, the contents within insurable buildings also may
be insured under separate coverage.
What flood losses are covered?
Your individual policy will specify the kind and amount of coverage it
provides. Direct physical losses resulting from flood events are covered,
as are losses due to flood-related erosion. Damages caused by mudslides
are also usually covered.
In certain cases, NFIP will pay claims on insured buildings that are subject
to imminent collapse due to erosion in order that the building can either
be demolished or relocated before any damage occurs. Specific requirements
must be met for such claims to be paid, and the amounts of payment are subject
to specific limits.
Are there certain buildings that cannot be covered?
Flood insurance is not available for buildings which the Federal
Insurance Administrator determines have been declared to be in violation
of state or local floodplain management regulations or ordinances. No new
policies can be written to cover such buildings, nor can an existing policy
be renewed.
How are flood insurance premiums calculated?
A number of factors are used to determine premium rates for flood insurance
coverage. They include: the amount of coverage purchased, the location,
the age and design of the building, building occupancy, and for buildings
in Special Flood Hazard areas, building elevation. Only single-family and
1-4 family dwellings in Zones C, D, and X indicated on Flood Insurance Rate
Maps are eligible for preferred risk coverage at reduced premium rates.
Certain loss limitations are in effect for these buildings, depending on
the amount of insurance purchased. See FloodSmart.gov for more details.
Community Rating System
The National Flood Insurance Program's Community
Rating System (CRS) is designed to recognize and reward communities such as Pima County
that work to reduce flood damages through various floodplain management
and flood awareness activities. Administered by the Federal
Emergency Management Agency (FEMA), the program can significantly reduce
flood insurance premiums paid by local property owners.
Some of the District activities recognized in the CRS program include:
- Reducing potential flood damages to existing buildings, especially
those that have incurred repeated flood damages in the past
- Improving management of developing areas that are not
mapped by the National Flood Insurance Program
- Requiring greater protection than the minimum standards set by the
National Flood Insurance Program
- Providing community-wide flood emergency response services
- Helping residents to obtain more information about flooding and flood
insurance
By providing enhanced customer services and implementing higher regulatory standards, the District’s participation in the CRS allows residents of unincorporated Pima County to obtain lower flood insurance rates. In 2007, the FEMA announced that Pima County achieved a CRS Class 5 rating (PDF format). This rating resulted in a 25% reduction in flood insurance premiums for properties within the Special Flood Hazard Areas (SFHAs) and a 10% reduction for properties outside SFHA’s. This new designation puts Pima County in the top five percent of the 1049 communities currently participating in the CRS nationwide.
