Low-Risk Areas, a High-Risk Insurance Decision

Many homeowners have the decision about flood insurance made for them. If their houses are in high-risk zones, their lenders require insurance. So they buy it.

But people with properties that the government deems relatively safe from flooding can also buy insurance, through the federal government's National Flood Insurance Program as well as from private insurers.

"You need to look at that as carefully as you look at your homeowners insurance," said Kimberly Lankford, author of "The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need."

How much -- if any -- flood insurance homeowners should buy is based on their assessment of the likelihood of a flood, their tolerance of risk, and the affordability of the premiums. Keep in mind that damages from flooding aren't covered by regular homeowners policies, nor do they kick in immediately. A federal policy requires a 30-day waiting period.

To determine the chance your house will flood, start by checking the flood maps. The Federal Emergency Management Agency is revising many of them and risk zones have shifted, including many in the District. "We're in a flurry to update all the flood maps," said Eugene Kinerney, spokesman for FEMA's mitigation division, which runs the federal flood insurance program.

A high-risk property is one deemed to have about 1 percent chance of flooding in any given year. But about a fourth of claims paid by the National Flood Insurance Program have been on policies in areas considered low-risk. Being outside high-risk boundaries "doesn't mean you're at no risk," Kinerney said. "Just lower."

That makes it your responsibility to figure out the likelihood of water damage. "Think about the history of your house," Lankford said. If it's a house you're considering buying or recently bought, "talk to neighbors."

In some cases, the geography is obvious, said Mike McCartin, an independent insurance agent in College Park. He lives high on a hill. "If my current house floods, you're going to need an ark."

In other cases, the risk isn't known yet. Large new housing developments can be particularly prone to surprises, Kinerney said. Any area that years ago was a farm but now has a townhouse development and a Wal-Mart has a lot of water running off, not percolating into a field, he said. In such areas, "you've got to look at storm-water management plans. That's what changing flood plains around here."

Try to be objective as you assess the risk to your home. "That's the biggest problem with selling flood insurance," said Brad Reeves, an independent insurance agent in Leonardtown, Md. "People don't think it could happen to them."

Under the National Flood Insurance Program, the federal government provides the insurance, but private insurance companies sell and service the policies. The government also sets the premiums, so there is no need to shop based on price.

If you use an agent for your other insurance policies and he offers flood insurance, stay with that person for simplicity's sake, Lankford said.