For Immediate Release, April 15, 2021

The Minnesota Department of Commerce, which regulates insurance in the state, encourages Minnesotans to know your flood facts, review your risks, the value of your property and the annual costs of flood insurance to determine whether flood insurance coverage makes sense for their property and possessions.

Severe Weather Awareness Week is April 12-16, 2021 in Minnesota. Spring and summer bring the threat of flash floods, high water and flooding, which highlight the importance of flood insurance.

FLOOD FACTS: 

1. One inch of water flooding a home causes an average $25,000 in damage.
2. More than one-third (36%) of flood claims last year were for properties located outside areas that FEMA considers at the highest risk of flooding. This is an increase from 24% in the 1990s according to a new report in Scientific American.
3. Homeowner’s or renter’s insurance policies, in most cases, does not cover flood damage. 
4. The average flood insurance policy costs about $500 per year, according to the Federal Emergency Management Agency. 
5. There is a 30-day waiting period after purchasing a flood insurance policy before it takes effect, so you need flood insurance before the threat of flood arises.

The Minnesota Department of Commerce has newly revised fact sheets, a fact sheet for insurance agents and a fact sheet for individuals with homeowners, renters or business insurance policies.

Flood insurance is available through the federally-backed National Flood Insurance Program (NFIP) and can be purchased through many licensed property insurance agents. Separate policies may be purchased for a building or its contents. The program also offers flood insurance for renters and businesses.

For more information, search “Flood Insurance Basics” at mn.gov/commerce. As with any insurance policy, carefully review the details before purchasing. It is important to know both what is covered and what is not. Insurance agents can help by providing accurate, timely information about flood insurance.

With You Every Day

The Minnesota Department of Commerce mission is to protect all Minnesotans in their everyday financial transactions by investigating and evaluating services, and advocating that they be fair, accessible and affordable. Wherever you are in Minnesota, the Department of Commerce is with you every day. Whether you’re filling up on gas, purchasing a home, working to reduce energy consumption or rebuilding after a disaster—we are with you, no matter what. The Minnesota Department of Commerce oversees more than 20 regulated industries, ensuring that Minnesota businesses are strong and Minnesota consumers are protected. Learn more at mn.gov/commerce. 

MEDIA CONTACT:

Brian Strub, Assistant Director of Communications

651-539-1464  | brian.strub@state.mn.us 

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