When it comes to costly natural disasters, flooding is near the top of the list. Not only does flooding tragically claim lives every year, but it also causes billions of dollars in property damage across the country. Because of its major rivers, Tennessee certainly gets its fair share of flooding. Thankfully, a Tennessee independent insurance agent can help you find the right flood insurance for you as well as reliable homeowners insurance. But first, here’s a closer look at how much it costs, what it covers, and more.

What Is Flood Insurance?

Basically, flood insurance is a contract between an insurance company and an individual or business owner in which the insurer agrees to cover losses relating to flood damage. Coverage is designed to protect your property’s physical structure or dwelling as well as your personal belongings or inventory if it gets damaged or destroyed by natural water (e.g., rain, waves, etc.). Often, water must cover at least two acres of land to qualify for reimbursement.

Flood coverage is excluded in many standard insurance policies like homeowners, renters, and business insurance in Tennessee because of the extreme property damage costs due to the peril. Without the proper coverage, homeowners and business owners could easily go bankrupt trying to pay for damages out of pocket. Flood insurance is only available through the National Flood Insurance Program (NFIP), which is a part of the Federal Emergency Management Agency (FEMA).

How Much Does Flood Insurance Cost in Tennessee?

Really, the cost of a flood insurance policy depends on a number of different factors like location, your area’s flooding history, and the elevation of your home or business. Properties located within official flood zones will obviously pay much more for coverage than those located in drier areas. The amount of coverage you purchase for both the contents and structural categories will also affect your premium cost as well as your deductible amount.

On the low end of the spectrum, homes and businesses located in smaller, less-risky towns in Tennessee might pay only $300 annually for coverage, while properties located in larger, often-flooded towns might pay closer to $3,000 each year. That considered, the average cost of flood insurance policies in the US currently is $700. A Tennessee independent insurance agent can help you find more specific flood insurance costs in your area.

How Can I Find Flood Insurance That Fits My Budget?

Your Tennessee independent insurance agent can help you explore your flood insurance options. Since they’re local, they know what kind and how much flood coverage is required in your specific area, so they’re best equipped to gather the right options for you. Together, the two of you can select a policy that meets your needs and fits within your budget as they review multiple quotes with you.

Am I Required to Have Flood Insurance in Tennessee?

It’s possible. Your mortgage lender may require you to have a policy if your property is located in an area deemed to be at high risk of flooding. However, even properties that are not in designated high-risk areas may require coverage. It’s a good idea to be familiar with your specific flood zone, which you can find on FEMA’s official website.

No matter your flood zone, you’ll still want to check in with your mortgage lender to make sure you’re not required to have coverage. Regardless of the official rule, however, it’s always a good idea to be covered. It’s estimated that as little as one inch of standing water in the home can cause up to $21,000 worth of damage, and that wouldn’t be fun to pay out of pocket.

What Does Flood Insurance Cover in Tennessee?

Similar to homeowners and business owners policies in Tennessee, flood insurance is designed to protect both your home/business and your stuff/inventory. But since both of these standard policies exclude flood damage specifically, that’s where flood insurance steps in to fill the void.

Flood insurance is designed to cover the following:

• Damage to/loss of your home or business: Known as “structural coverage,” this includes the foundation of the building (also known as the “dwelling”), electrical systems, indoor plumbing, built-in appliances, and any additional flooring like carpeting. Detached structures like sheds are often covered as well.
• Damage to/loss of your stuff or inventory: Known as “contents coverage,” this includes furniture (built-in and free-standing), smaller/not built-in appliances, some food, valuables, and clothing. For businesses, this coverage usually includes inventory.

It’s important to note that any depreciation of your property's value will be factored in to what a flood insurance policy pays towards reimbursement for damages, depending on the type of claim filed. Certain types of claims only qualify for actual current cash value reimbursement, while others qualify for the full original replacement cost.

What Are the Benefits of Flood Insurance in Tennessee?

The most obvious benefit of flood insurance is that it provides critical protection against property damage due to natural floodwaters. That being said, there are multiple important benefits to having a flood insurance policy in Tennessee:

• Protection for your home or office building’s structure: Flood insurance policies provide protection against property damage to residential homes and office spaces or storefronts that’s caused by flooding. This coverage is specifically excluded in standard homeowners and business owners policies in Tennessee.
• Protection for your belongings or inventory: Flood insurance policies also provide protection lacking in standard homeowners or business owners policies in Tennessee for flood damage to your personal belongings or business inventory.

Flood damage can cost homeowners or business owners in Tennessee hundreds of thousands of dollars for repairs, replacements, and rebuilds. Having the right flood insurance policy can mean the difference between financial recovery and having to close a building’s doors permanently.

Why Work with a Tennessee Independent Insurance Agent?

In order to get the protection you need and deserve, you’ll want to work with a trusted expert. And who could be better for the job than a local agent who shares your area code? Independent insurance agents act as your own personal insurance shoppers, offering you tons more options than one-policy companies. With just one call, they’ll hook you up with multiple quotes.

Tennessee independent insurance agents are armed with knowledge on what coverage is needed in your area, and they’ll get you set up with just enough of it — not too little, not too much. They’ll handle all the heavy lifting, so you can rest assured you’ll be set up with the right coverage at the right price.

They’re not just there at the beginning either. If disaster strikes, your Tennessee agent will be there to help walk you through the claims process and make sure you’re getting the benefits you're entitled to. Now that’s thinking ahead.