Flooding holds the record as the most frequent and expensive natural disaster in the US. Floods can happen as a result of severe rainfall, hurricanes, melting snow, or rivers overflowing, and they have the capability of destroying homes, damaging properties, and disrupting lives within minutes. Regardless, many homeowners still choose to remain uninsured against this extreme peril by not carrying flood insurance.
At MSIG, corporate values are centered on what matters, and for that reason, flood insurance isn’t just a policy but rather peace of mind. Homeowners in the Great Lakes region of the Upper Midwest area of the US, specifically in Wisconsin, need to understand flood insurance, what it covers, its significance, who needs it, how to acquire it, and how to maximize their insurance benefits.
It is a specialized insurance policy designed to cover losses caused by water damage due to flooding. It is not typically included in standard homeowner’s, business, or renter’s insurance policies.
This can protect both residential and commercial properties from flood-related damage to:
- Structural components (walls, foundation, electrical systems)
- Personal belongings (furniture, electronics, appliances)
- Business equipment and inventory (for commercial properties)
Why Is Flood Insurance Important?
Floods are unpredictable and can happen anywhere—it’s a common myth that only high-risk areas need coverage. According to FEMA:
“Just one inch of flood water can cause up to $25,000 in damage.”
Key Reasons Why Flood Insurance Matters:
- Most homeowners’ policies don’t cover flooding
- Floods are the #1 natural disaster in the U.S.
- Every property is in a flood zone—it’s just a matter of risk level
- Recovery without insurance can be financially devastating
- Mortgage lenders may require it in high-risk areas
What Does Flood Insurance Cover?
Flood insurance typically covers two types of property: Building Property and Personal Property (Contents).
Building Property Coverage:
- Foundation and structural elements
- Electrical and plumbing systems
- HVAC systems
- Water heaters
- Built-in appliances such as refrigerators and stoves
- Permanently installed carpeting
- Detached garage
Personal Property Coverage:
- Personal belongings like clothing, furniture, and electronics
- Curtains and portable appliances
- Washer/dryer units
- Freezers and food inside
- Certain valuable items (e.g., artwork, furs) with limited coverage
What Isn’t Covered by Flood Insurance?
To make informed decisions about your coverage, it’s essential to understand what flood insurance does not cover. Generally, damage caused by moisture, mildew, or mold that isn’t directly attributable to a flood event is excluded from coverage. Additionally, flood insurance does not cover temporary living expenses, such as hotel accommodations or meals, even if your home becomes uninhabitable.
Items like currency, precious metals, and stock certificates are also excluded. Vehicles, including cars and trucks, are not protected under flood insurance policies—these typically require separate auto insurance with comprehensive coverage. Lastly, damage to outdoor property, such as decks, fences, swimming pools, landscaping, and patios, is generally not included in coverage.
Tip from MSIG: Consider pairing flood insurance with other property insurance products, like a homeowners or commercial policy, for broader and more robust protection.
Who Needs Flood Insurance?
The truth is that everyone is at risk of flooding. You don’t have to live in a high-risk flood zone to experience flood damage.
Three Major Risk Categories
High-Risk Flood Zones (Special Flood Hazard Areas – SFHA):
- Mandatory insurance if you have a federally backed mortgage
- Includes coastal areas, floodplains, and low-lying regions
Moderate-to-Low-Risk Zones:
- Over 25% of flood insurance claims come from these areas
- Policies in low-risk areas are often significantly more affordable, making them a wise safeguard against the rising costs of natural disasters
Undetermined Risk Areas:
- New developments or unclassified regions
- Often overlooked but still vulnerable
Insurance Claim Guide:
Factors that influence your claim include:
- Location and flood zone designation
- Elevation of your property
- Building type and materials
- Year built and foundation type
- Amount of coverage and deductible chosen
Step-by-Step Claims Process:
For a smooth recovery, follow these steps:
- Notify MSIG or your insurer immediately
- Document the damage with photos/videos
- Keep receipts for any emergency repairs
- Submit a Proof of Loss form as soon as possible
- Schedule an inspection with a flood adjuster
The MSIG Team supports our clients through the claims process, helping ensure communication with insurance companies and adjusters is as smooth as possible.
How to Reduce Your Flood Insurance Premium:
There are ways to potentially lower your flood insurance costs:
- Elevate your home above the base flood elevation (BFE)
- Install FEMA-approved flood vents or barriers
- Use flood-resistant materials
- Get an Elevation Certificate
- Choose higher deductibles
- For private flood policies, bundle with other insurance products via MSIG
Proactive flood mitigation doesn’t just protect your home—it may save you thousands in premiums and damages.
Frequently Asked Questions About Flood Insurance (FAQs)
- Is flood insurance mandatory?
Only if your property is in a high-risk flood zone and you have a federally regulated mortgage. However, it’s highly recommended for all property owners.
- When does flood insurance go into effect?
Policies typically have a 30-day waiting period unless insurance is required in connection with a loan at closing. Some private insurers may offer immediate or shorter waiting periods.
- Can renters buy flood insurance?
Yes! Renters can purchase contents-only protection for their personal belongings.
Why MSIG Is Your Solution:
At MSIG, we combine years of insurance expertise with personalized service to help protect your property against nearly every type of risk, including flooding.
- Access to many markets
- Custom coverage tailored to your home, business, or rental property
- Licensed agents who help you understand your flood risk
- Competitive pricing and flexible payment options
- Fast, responsive support for claims and policy questions
Don’t wait. The reality is simple: floods can happen anywhere, and without insurance, the cost can be unbearable. Let MSIG help you prepare today, so you can have peace of mind tomorrow.
Get Your Free Quote Now:
Contact us today to speak with one of our insurance advisors and receive a custom insurance quote. Secure your property. Safeguard your future.
