Flood Insurance Policies
You just bought your dream home. You paid $500,000 plus all of the furnishings. That's a lot of money, but it's worth it because this house is the perfect home for you and your family. Are you going to insure it? Of course you are, why would I even ask. Are you going to purchase insurance incase of flood? That is included in my property insurance...isn't it?
What is it?
As the name "Flood Insurance" implies, it insures your home and furnishings against damage from a flood. It is NOT included in your property insurance or an umbrella policy.
Who is it for?
People who live near the ocean or the Gulf of Mexico need coverage, but those are the only ones, right? FEMA (Federal Emergency Management Agency) has created maps to designate what areas are in a flood zone. You can see if your property is in a flood zone at FEMA Flood Maps. This is who needs flood coverage:
Coverage is required for any mortgaged buildings in a flood zone.
Coverage is recommended for any home in a flood zone with no mortgage.
Flood coverage can be purchased even if the home is not in a flood zone but you want to feel secure that you have coverage for every disaster. 1 in 4 flood claims is on property NOT in a flood zone.
How it Works.
This is the definition of flood: "A flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow." Your disaster must fit this criteria to be covered by flood insurance. It can be the result of circumstances such as hurricanes or rain.
Different Types of Coverage in Existence
In many flood areas the only flood underwriter is FEMA, and they will only insure up to $250,000 on a residence. If you want insurance for over that amount, you need to go private insurance company. Policies cannot be written if there is a tornado within a certain area and when written, do not go into effect for 30 days.
FloodSmart.gov has an interactive program to help determine the amount of damage that could be done by a flood.
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