Despite being a desert city, Albuquerque does experience flash flooding from time to time. Heavy rains can quickly saturate the ground and cause water to flow into parts of the city that are not equipped to handle the rising waters. These floods are most likely to occur between June 15 and September 30, which is monsoon season in New Mexico.
Flood insurance can protect the investment you have made in your home or business by covering the damage caused by flooding. These policies do not go into effect until 30 days after purchase, so do not wait until a flood is imminent to purchase coverage. Find an independent insurance agent in Albuquerque for help securing an affordable flood insurance policy.
What Is Flood Insurance?
Flooding causes about $5 billion worth of damage in the US every year. However, flood damage is not covered by conventional insurance policies like home insurance, renters insurance, and business insurance.
Because the damage caused by rising waters is so expensive and has the potential to wipe out entire neighborhoods, the federal government stepped in in 1968 and created the National Flood Insurance Program (NFIP), which provides affordable flood insurance policies for home and business owners.
How Much Does Flood Insurance Cost in Albuquerque, NM?
Flood insurance policies are available through the government-run NFIP program. Rates for coverage are standard across the United States and are based on:
- Whether your property is in a designated flood zone
- How much structural coverage you are purchasing
- How much contents coverage you are purchasing
Unlike with other insurance policies, filing a flood insurance claim will not cause your rates to increase. Also, even if your property is located in a designated flood zone, you cannot be turned down for coverage.
Average Rainfall and Flooding in Albuquerque
Albuquerque is, for the most part, a very dry area, which may make it seem that this city has an extremely low risk of flood damage.
- US average annual rainfall: 38.61 inches
- Albuquerque average annual rainfall: 9.45 inches
Despite the low average rainfall, however, flooding does occur on occasion following prolonged storms that dump a lot of water on the region in a short time. The surge of water can cause arroyos to fill and overflow and water can rush down area streets and into homes. This is why area residents should be sure that their property is covered against the risk of flash flooding.
Is Flood Insurance Required in Albuquerque, NM?
Mortgage lenders will only require you to purchase flood insurance if your property is located in a designated Special Flood Hazard Area (SFHA). If you live in a low- or moderate-risk area, your lender may or may not require this coverage. If your property is located outside a designated flood zone or if you have paid off your mortgage, this coverage is optional.
In Albuquerque, more than 5,000 acres of land containing approximately 700 homes and business falls within an SFHA zone.
Be aware that even if your home or business is not located in a designated flood zone, this does not mean you are not at risk for experiencing flood damage. About 20% of all flood claims filed are for properties that are located outside SFHA zones. Talk to a local independent agent to learn more about your risks and the benefits of having a flood insurance policy.
What Does Flood Insurance Cover?
Flood insurance policies offer two types of coverage: structural and contents. You may choose to purchase just one or both types of coverage. If you are renting, you will only need to purchase contents coverage, since your landlord will be responsible for covering structural damage.
Structural coverage flood insurance
Homeowners can purchase a maximum of $250,000 in structural coverage while businesses have a limit of $500,000. This insurance covers damage to your property’s foundation and structural equipment including circuit breakers, water heaters, and HVAC systems.
Contents coverage flood insurance
Homeowners can purchase a maximum of $100,000 in contents coverage while businesses have a limit of $500,000. For homeowners, this insurance can cover personal belongings kept on main floors as well as appliances, such as your washing machine, dryer, and freezer, if they are kept in your basement.
Business owners can get coverage for their business property such as office furniture and merchandise.
What Is Not Covered by Flood Insurance?
Flood insurance does not cover all flood-related damage. Your policy will not cover:
- Damage to furniture and personal belongings that are kept in a finished basement
- Damage caused by earth movement such as landslides or mudslides
- Damage caused by mold, mildew, or moisture
- Damage to property kept outside your home
- Damage to currency or important papers
Talk to your local independent insurance agent for more information about the limitations of a flood insurance policy.
Why Work with an Independent Agent in Albuquerque, NM?
Independent agents in Albuquerque can offer you guidance and advice when you are shopping for a suitable flood insurance policy. They can also provide answers to any of your insurance-related questions.
Contact an insurance agent in Albuquerque to learn more about flood insurance and other insurance products that may be beneficial to you.
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