Is Flood Insurance Necessary for San Francisco Homeowners?

Posted on: November 20, 2014 | By: Michael T. | fema, insurance, insurance home, San Francisco Flood Damage Insurance

San Francisco Flood Damage Insurance

Is Flood Insurance Necessary for San Francisco Homeowners?

Unlike car insurance, flood insurance is not a requirement. However, most homeowners’ insurance policies do not cover flood damage. For this reason, homeowners would be wise to consider purchasing flood insurance through the federal government and the National Flood Insurance Program (NFIP).

But the question remains: Is flood insurance worth the investment, or is it smarter just to see what happens and invest in flood repair? This article will discuss whether you should invest in San Francisco flood insurance.

The Flood Insurance Rate Map

The Federal Emergency Management Agency (FEMA) distributes a Flood Insurance Rate Map, or FIRM. The main point of the FIRM is to outline your area’s flooding concerns. Many lenders use this as a way to determine whether or not your home is in a flood zone.

The FIRM is available on FEMA’s website, or you can request a copy by mail or by phone. You can also get a copy of the Flood Insurance Study (FIS) that accompanies your area. Flooding areas fall into two categories: low to moderate risk and high risk.

The Loan

Just because you reside in a high-risk flood does not necessarily mean you must have flood insurance, but FEMA and the NFIP highly recommend it. However, some lenders will require it. Flood insurance is also necessary if the U.S. government regulates your lender.


The NFIP offers two types of flood insurance policies. The first policy is a preferred risk policy, which is designed for homeowners in low or moderate risk areas, and carries a lower premium. High-risk areas should have standard policies, which offer coverage for the home and your belongings.

Before determining your premium, the NFIP considers several factors including:

  • The year the house was built
  • The number of people the house can hold
  • The number of floors
  • The value of contents
  • The location
  • The deductible

Talk to a Professional

Ultimately, no matter how well you prepare for a flood, the remediation costs could be higher than you anticipate. If you do not have emergency funds stored away, it may be wise to invest in flood insurance.

Some policies in moderate- and low-risk areas could cost less than a monthly cellphone bill and save you thousands in the worst-case scenario. For advice on keeping your property safe when catastrophe strikes, contact Allied Restoration Company today at 415-529-5637.