Flooding is the deadliest natural disaster in the US and costs the nation billions of dollars in property damage each year. Tennessee has also seen its fair share of floods, such as the infamous flooding of the Grand Ole Opry in 2010. That’s why it’s so important for homeowners, renters, and business owners alike to get set up with the right flood insurance for their needs. To get started, here’s a closer look at flood insurance, where to find it, what it covers, and beyond.

An independent insurance agent in Tennessee can help you find the perfect flood insurance policy as well as an excellent homeowners insurance policy.

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 Do I Buy Flood Insurance in Tennessee?

Though flood insurance is only offered through the National Flood Insurance Program, you cannot buy it directly from there. According to FEMA’s official website, the only options for purchasing flood insurance are through an insurer or insurance agent who participates in the NFIP. However, the NFIP can refer you to a participating insurance agent if you contact their Referral Call Center.

Your Tennessee independent insurance agent can also 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.

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 will 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.

What Does Flood Insurance Cover in Tennessee?

Now that you know how to get it, you might be wondering what exactly flood insurance covers. 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 Does Flood Insurance Not Cover in Tennessee?

While you’re looking into flood coverage, it’s also a good idea to be familiar with what it doesn’t include. Flood insurance provides a lot of protection, but it’s not designed to cover all types of flooding or water damage. The good news is that many of the exclusions under flood insurance policies are actually covered by standard homeowners or business owners policies in Tennessee.

Commonly excluded perils under flood insurance in Tennessee include the following:

• Flooding caused by non-natural water events (e.g., backed up toilets or sewers)
• Damage caused by mold, mildew or moisture not directly relating to the flood
• Earth movement related damage
• Loss of use or additional living expenses like hotel rooms while awaiting repairs on the damaged property
• Business interruption costs
• Additional property outside of the dwelling like patios, fences, swimming pools, septic systems, trees, and shrubs
• Damage due to natural water that inundates less than two acres of normally dry land
• Certain kinds of personal property

Standard homeowners policies in Tennessee do cover additional living expenses in the event you’re forced to live elsewhere temporarily while repairs are being made on your home. Also, standard business owners policies in Tennessee come with protection for interruptions leading to lost revenue.

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.