Nearly all homeowners, renters, and business insurance policies exclude coverage for damage caused by floods. Unfortunately, more than 34,000 properties in this state have a significant risk of sustaining flood damage over the next thirty years.
To be protected against financial losses related to flooding, you can purchase flood insurance. Affordable policies are available through the National Flood Insurance Program (NFIP), a program administered by FEMA.
If your home or business is in a flood zone and you still owe money on a mortgage or home equity loan, your lender will require you to carry flood insurance. Otherwise, this coverage is optional. When deciding whether to purchase a policy, consider that the average compensation per flood claim in Rhode Island is $25,500. Flood policies take 30 days to go into effect.