Lately here in Illinois we seem to be having 100 year floods on an annual basis. Every year I get calls from clients who have a flooded basement and have not purchased coverage for this risk. Where water back up insurance covers water backing up through drains, sewers and sump pumps, Flood insurance is designed to cover water coming over the top of the foundation. This means that generally the house is surrounded by water and the water has nowhere else to go, but enter the home over the top of the foundation. Over the course of a 30 year mortgage, the chance of having Flood damage is 26% where it is 9% for fire damage.
In 1968 Congress issued the National Flood Insurance act and created the National Flood Insurance program. Since then many insurance companies including Allstate have worked in conjunction with the Federal program, and take care of the underwriting as well as claims. Anyone can purchase flood insurance, however if you live in a risky flood zone and have a mortgage, it will be required by the mortgage company to protect the collateral on the loan. Flood zones range from A,B,C for flood zones, and X if you are not in a zone. Anyone can purchase flood insurance regardless if there are in a flood zone or not. If you are not in a high risk zone. you can purchase a preferred risk policy for as little as $119 a year.
As always call your agent and get the rates based on your situation. A qualified insurance agent can help you look up your zone and help assess the need for coverage based on your individual basis. I am a licensed Allstate Agent for both Illinois and Wisconsin and can help any individual seeking coverage, even if they have no other insurance with Allstate.
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