Protect your New Home
What to Ask Your insurance Agent

Making insurance decisions is an important step in buying a home. 
Reference the checklist below and talk with your insurance agent 
prior to closing so you can feel confident that your new investment 
is adequately protected.
 
o What are the key features of a homeowners policy, including 
exclusions and special limits? 
o Does homeowners insurance provide guaranteed replacement 
cost coverage? Does my policy provide replacement cost coverage 
on my contents? 
o Can I purchase additional coverage to insure my valuables, such as a 
computer or jewelry? 
o What other policies are required or should I consider? Wind? Flood? 
Earthquake? Excess Personal Liability? 
o Is coverage for other structures (e.g. fencing, garages) covered under 
a homeowners policy? 
o Do I need to add coverage for sewer and drain backup? Can I insure 
my basement for sump-pump failure and water seepage? 
o How can I make my home safer and reduce the cost of insurance? 
Will installing fire or burglar alarms provide me a discount? 
o How much does each policy cost? How are my rates determined? 
o What are my deductible options? 
o How much coverage should I consider to protect my financial interests, 
the equity in my home, and my lender’s interests? 
o Where can I find out about this property’s flood risk and if the building 
has ever flooded? 

Protect your New Home
Flood Risk & Flood Insurance Basics

Most homeowners insurance doesn’t cover flooding. Only a flood 
insurance policy will cover flood damage. Your insurance agent can 
tell you more about the benefits of flood insurance. In the meantime, 
here are a few things you should know: 
• The National Flood Insurance Program (NFIP), administered by the Federal 
Emergency Management Agency (FEMA), enables residents in participating 
communities to purchase federally backed flood insurance. Currently, more 
than 20,400 communities participate in the NFIP nationwide. 
• In most cases, you can purchase flood insurance coverage from the insurance 
agent who sells your homeowners policy. 
• Approximately 25 percent of flood insurance claims come from outside 
high-flood risk areas — consider purchasing flood insurance even if you 
are not required to do so by your lender. 
• If your home is in a low- to moderate-flood risk area, you could be eligible 
for a low-cost Preferred Risk Policy. 

Flood Insurance Requirements 
• If your new home is located in a Special Flood Hazard Area, (land at high 
risk of a major flood) and you obtain a mortgage from a federally regulated 
or insured lender, you are required to purchase flood insurance. 
• If your home is located in a high-flood risk area, your lender must notify 
you of your requirement to purchase flood insurance within a reasonable 
time prior to the loan closing. The loan cannot be closed without a flood 
insurance policy in place. 
• The usual 30-day waiting period when purchasing flood insurance is waived if 
you are buying a home and you are required to purchase coverage by your lender. 

For more information or to locate an agent in your community, 
visit FloodSmart.gov or call 1-800-427-2419.