HomeMy WebLinkAboutCityofEdinaFloodResilienceFactSheets-03-24-2020_Flood InsuranceActions for Flood Resilient Homes:
Flood Insurance
According to the Federal Emergency Management Agency (FEMA), flooding is the most common natural disaster in the United
States and the consequences can be costly. Even 1 inch of water can cause $25,000 damage to your home.
While homeowner’s insurance policies do not typically cover flood damage, the good news is that you can purchase separate
protection. Because the City of Edina participates in the National Flood Insurance Program (NFIP), all of its residents are eligible to
purchase flood insurance.
Who needs flood insurance?
Under federal law, if your home is within, or touches, a high-risk flood area and you have a mortgage on the property, you will be
required to purchase flood insurance. Homes considered to be at high risk are those located within the 100-year floodplain—
areas where there is a 1% annual risk of water rising above the base flood elevation.
If you live near an area of past flooding, you should consider purchasing flood insurance. Even if you don’t live in or near a high-
risk area, flood insurance can be a wise investment. In fact, more than 20 percent of flood insurance claims come from properties
outside of high-risk flood zones. And, compared to the cost of paying back a disaster loan, flood insurance is a bargain. The
Minnesota Commerce Department calculates that the average payment on a $50,000 disaster loan is $240 per month ($2,880
per year) for 30 years, while a $100,000 flood insurance premium is about $33 per month ($400 per year).
Flood insurance is not limited to homeowners; it is also available to renters and owners of non-residential buildings.
How do I find out about my risk of flooding?
To learn about your specific risk of flooding, go to the City of
Edina’s interactive flood risk map, or visit FEMA’s Flood Map
Service Area.
How do I buy insurance?
You can start by contacting the agent who provides your
auto, homeowner’s, or renter’s insurance. They may be able
to help you purchase flood insurance. If your insurance agent
does not sell flood insurance, you can contact the NFIP Help
Center at 800-427-4661.
What does flood insurance cover?
You can purchase separate coverage for your home and its
contents; both are recommended for the best protection.
Make sure your policy contains a comprehensive list of items
covered.
Almost all walled and roofed buildings above ground can be
covered. Coverage available for basements typically includes
foundation elements (including posts or other support
systems), utility connections, and necessary mechanical
equipment (e.g., furnace, hot water heater, clothes washer
and dryer, food freezer, air conditioner, electrical junction).
Items typically found in finished basements—paneling,
carpeting, furniture—are not covered.
You must normally wait 30 days after you’ve paid your
premium before your policy will be effective.
Other considerations
Losses from sewer backup are not covered by flood
insurance unless the backup occurs as a result of surface
water flooding. You may want to consider purchasing a rider
on your homeowner’s policy to protect you from sewer
backups not related to flooding.
COST: $150-$12,0001
Costs are variable based on whether the location of the
structure being insured is above or below the base flood
elevation, whether the policy holder is a homeowner or renter,
and many other factors. Due to the numerous variables, the
best way to learn what your costs would be is to contact
multiple providers and utilize the resources at the bottom of
this page.
For more information on flood resilience, contact the Engineering Department at 952-826-0371.
1According to the Minnesota Department of Commerce, the average cost for a flood insurance policy is $500 per year. In low-to-moderate risk areas insurance
can cost just over $100 per year. A renter’s policy can range from $150–$900 according to the Policygenius website:
https://www.policygenius.com/renters-insurance/what-renters-need-to-know-about-flood-insurance/
Other resources: FEMA National Flood Insurance Program: www.floodsmart.gov
Minnesota Department of Commerce Flood Insurance Basics: https://mn.gov/commerce/consumers/your-home/protect/other/floods/basics.jsp
Minnesota Department of Natural Resources Flood Insurance FAQs: https://files.dnr.state.mn.us/publications/waters/floodplain_management_fact_sheet_8.pdf
Before flood action During flood action After flood action