Grow Financial Federal Credit Union
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June 8, 2023

Why You Need Flood Insurance and What You Need to Know

If your home is located in a designated Special Hazard Flood Area, chances are, your mortgage lender requires flood insurance. If not, you’re off the hook, right? For being required to purchase flood insurance, yes. For a flood, don’t bet on it.

In 2022, there were 18 weather disaster events with losses exceeding $1 billion each to affect the United States, including one significant flooding event.1 About 90 percent of all U.S. natural disasters involve flooding, and Federal Emergency Management Agency (FEMA) says just one inch of floodwater can cause as much as $25,000 in damage to a home.2

Sounds to us like flood insurance is not only a good idea — it’s essential to be fully protected in a time when severe weather events are becoming unavoidable. Here’s what you need to know about this valuable coverage.

Frequently Asked Questions About Flood Insurance

Does my homeowners insurance cover flood damage?
Most homeowners policies don’t include coverage for flood damage. Flood insurance is purchased separately.

Who qualifies for flood insurance?
Homeowners, renters and businesses in communities that participate in the National Flood Insurance Program. Your community probably does.

What does flood insurance cover?
Flood policies are comprehensive, covering both your home and its foundation, electrical and plumbing systems, major appliances, carpeting, and personal possessions such as clothing, furniture and electronics.

What impacts the cost of my flood insurance policy?

The insurance provider considers various factors when calculating your annual flood insurance premium, including but not limited to:

  • The type of coverage
  • The flood risk (your flood zone)
  • The design, location and age of your home
  • The deductible you choose

Is there a waiting period for coverage?
According to FEMA, a 30-day waiting period between the date you purchase coverage and the date your policy goes into effect is standard, with a few exceptions.2 Learn more at

Is flood insurance affordable?
Flood insurance can be affordable, especially when you select a higher deductible or live in a lower risk area. Our affiliated insurance services provider, Quorum Insurance, LLC, offers Preferred Risk coverage at very reasonable rates. Find out more about paying less for flood insurance.

Free, No-Obligation Quotes: Call 800.714.1447

Quorum is an independent agency representing multiple flood insurance carriers, and their agents can match you to the right policy, at the right price. It’s coverage you can’t afford to be without. Call today or get a quote online.3

1NOAA National Centers for Environmental Information (NCEI) U.S. Billion-Dollar Weather and Climate Disasters (2023). Accessed May 22, 2023.
2National Flood Insurance Program (NFIP). Accessed May 22, 2023.
3Quorum Insurance, LLC is an affiliate of Grow Financial. Insurance products purchased through Quorum Insurance, LLC are not deposits of Grow Financial and are not protected by NCUA. They are not an obligation of or guaranteed by Grow Financial and may be subject to risk. Business conducted with Quorum Insurance, LLC is separate and distinct from any business conducted with Grow Financial. Grow Financial is in no way responsible for the services provided through this program.

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