How to Get a Flood Insurance Policy in Arizona
There are several ways to get flood insurance in Arizona. First, you’ll need to decide if you need a federally backed policy, a private policy, or a combination of the two. Here’s how to choose:
Federally backed policies provide up to $250,000 for the home and $100,000 for personal belongings. These policies tend to be less expensive.
Private policies have larger coverage limits and can be molded to fit your needs. However, if you’re substituting a private policy to meet flood insurance requirements, be sure that your policy meets your lender ’s needs before purchasing. They tend to be more expensive.
For people with high-value homes, a combination of public and private policies often works best. It combines the affordability of a public policy with the flexibility of a private option.
National Flood Insurance Program ( NFIP )
The most common form of flood insurance comes from the National Flood Insurance Program ( NFIP ). The NFIP is operated by the federal government. You can purchase an NFIP policy through your current insurer if it offers flood options. Insurers that offer NFIP -backed flood policies in Arizona include:
Alternatively, you can visit FloodSmart.gov or call the NFIP at 1 (877) 336-2627 to find providers in your area.
Private Flood Insurance
For homeowners needing more than standard flood insurance, a private policy can help fill in the gaps. This is appropriate for people with homes that would cost more than $250,000 to rebuild or with mortgages larger than $250,000.
Some homeowners opt to purchase a private policy instead of one backed by the NFIP. This is acceptable so long as the policy complies with federal standards. Your lender will help you ensure that your policy is adequate.
Does FEMA Provide Flood Insurance?
FEMA is the Federal Emergency Management Agency. It exists to coordinate the federal response to natural disasters and other large-scale emergencies. While FEMA does provide payouts to people who suffer losses from disasters, it is not a substitute for flood insurance.
FEMA only offers financial help to people affected by a declared emergency. Even when flooding is declared an emergency, the FEMA payout is small. The maximum payout is $30,000. However, the average homeowner receives between $3,000 and $7,000. This is not enough to cover even minor damages from flooding.