Consumer Counselor
Insurance Information for Michigan Consumers
[FIS-PUB 0215] Michigan Department of Insurance and Financial Services | 877-999-6442 | www.Michigan.gov/DIFS [11/19]
Flood Insurance: What You Need to Know
Most homeowners and renters insurance
policies do not cover flood damage. A
property owner is eligible to purchase flood
insurance as long as the community in
which they live participates in the National
Flood Insurance Program (NFIP).
Federal disaster assistance is customarily
offered to homeowners and renters in the
form of a low interest loan and is only
offered if the President declares a major
disaster. When property owners and renters
receive financial assistance from the federal
government following a presidentially
declared disaster, they may be required to
purchase flood insurance coverage if they
own the home or, if a renter, they continue
living in that home.
Everyone lives in a flood zone. The question
is whether it is a high-risk or a moderate- to
low-risk zone. The Federal Emergency
Management Agency (FEMA) publishes
flood hazard maps based on various
statistical data and these maps outline
different flood risk areas.
If your home is located in a high-risk zone,
called a Special Flood Hazard Area (SFHA),
you will be required to buy and maintain
flood insurance for the term of your home
mortgage loan and to become eligible for
FEMA disaster assistance in the future. A
standard rated policy is your only option.
If you live in a moderate- to low-risk area,
you may qualify for a Preferred Risk Policy.
That policy has the lowest premiums
available.
The federal government sets the premium
rates and the costs do not vary; therefore,
there is no need to shop for rates. The
premium is the same whether you purchase
your policy through your insurance agent or
any private insurance company which writes
and services NFIP flood insurance through
an arrangement with FEMA. Typically, there
is a 30-day waiting period from date of
purchase before the policy takes effect.
As a property owner, you should contact
your insurance agent. Your insurance agent
can help you in determining the availability,
your need, and cost for flood insurance. The
agent should not charge you for this
information. If your agent cannot provide
you with flood insurance information, you
can contact one of the numbers listed
below.
For more information about the NFIP and
flood insurance, call 1-800-427-4661.
For an agent referral, call 1-888-435-6637.
About DIFS
The mission of the Michigan Department of
Insurance and Financial Services is to
ensure access to safe and secure insurance
and financial services fundamental for the
opportunity, security and success of
Michigan residents, while fostering
economic growth and sustainability in both
industries. In addition, the Department
provides consumer protection, outreach,
and financial literacy and education services
to Michigan citizens. For more information
please contact DIFS at 877-999-6442 or
visit www.michigan.gov/DIFS
