Flood Insurance
Most, if not all, homeowner’s insurance policies do not cover floods. Your mortgage company may require flood insurance if you live in certain areas. You do not have to live close to a river to be exposed to a possible flood. If you live in a special flood risk area, you need flood insurance, especially if you need help from the federal government.
Flood Insurance Facts
- Floods are the most common natural disaster.
- 30% of floods occur in moderate risk areas.
- If you live in a flood community you have greater chance of having a flood than you do of having a fire.
The law requires coverage in an amount equal to the outstanding principal balance of the loan, the value of your home, or the maximum limit of coverage under the program; whichever is less.
The only way to purchase flood insurance is through the federal government, (FEMA).
Flood Insurance Myths
1. “We have had a flood, so I cannot get coverage.” It doesn’t matter how many times your home has been flooded. You are still eligible for coverage if your community participates in the National Flood Insurance Program.
2. “I do not live near water so I do not need the coverage.” Flood waters can travel hundreds of miles. Check with our office for information on how we can help you determine your risk.
3. “I live in a flood zone, so I cannot get coverage.” You can get federal flood insurance no matter where you live if your community participates in the National Flood Insurance Program.
4. “Flood insurance is only for homeowners.” Flood insurance is available for renters, condo owners, businesses, and manufactured homes.