Flood Insurance: Should you Buy it?

If you live in a high-risk flood zone or have a mortgage on your house, in the majority of cases, your lender is going to require you to purchase flood insurance.

But, if you reside within a moderate- to low-risk zone, as well as your neighborhood belongs to the NFIP (as most do), you’ll have the choice to buy it.

If you are in the latter classification, your initial question potentially is, “How much will it cost?” Federal insurance for floods may cost just a couple of hundred dollars or up to $10,000 per year, depending upon your risk factor. A few additional facts which may assist you in making up your mind:

Homeowners Insurance Does Not Cover Flood Damage

It just covers water that is falling from the sky. As water reaches the ground and seeps into your house, it is a flood, and just flood insurance is going to pay for that damage.

For instance, if a tree limb pokes one hole within your roof while there’s a rainstorm, and rainwater causes damage to your floor and ceiling, that is covered by your policy for Homeowners Insurance. However, if heavier rain causes a creek in your community to overflow inside your house, that is only covered through flood insurance.

Everyone Resides inside a Flood Zone

It is simply a matter of how much flood risk there is. The National Flood Insurance Program can inform you of your home’s exact flood risk. However, in a nutshell, A and V zones are high risk regions. B, C, and X are moderate- to low-risk regions. If you are in the D zone, the risk is unknown because it has not yet been mapped. However, you can still buy flood insurance. These zones are utilized to aid in determining policy rates.

If you need help cleaning up after flood damage contact Triangle Legacy at 1-800-830-3324.