Do I need flood insurance? Yes. The reality is every homeowner needs flood insurance. Floods can and do occur in areas outside of the Federal Emergency Management Agency’s (FEMA) high flood risk areas.
FEMA has created and frequently updates flood maps. These show areas with a higher likelihood of floods occurring. They are the obvious locations near rivers, lakes and coastal areas, and some not so obvious.
If you purchase a home in a FEMA designated flood high risk zone and you have a government backed loan, you are required to carry flood insurance.
It sometimes happens that homeowners with government backed mortgages suddenly find their house, after many years of ownership, now in a Flood Hazard Zone. This can be due to FEMA updating the area flood maps. Now, suddenly these people are required to purchase flood insurance.
Will my homeowner’s policy cover floods? No. Homeowners policies typically define a flood as, your home being flooded as a result of stormwater seeping or flowing on the surface of the ground , an overflowing body of water flowing into your home, or groundwater seeping or leaking into your basement. Your homeowner’s policy will not cover it. In other words, a flood is excluded from coverage under the homeowner’s policy form.
Many people tell me that they do not need flood insurance because their house is located high above the nearest body of water. While that may be true, the area can still flood. We have seen torrential rains of 4 or more inches in our area several times over the past several years. As a result, we have had homes on the top of hills experience floods. The result is usually there is no insurance money to repair what can be extensive damage. Flood insurance was not required by the mortgage company, so the homeowner elected not to purchase it.
We have even had instances where the neighbors above ground pool fails for whatever reason. A wall of water from the pool runs into someone’s basement windows of the house next door. As a result, there are several inches of water that has caused significant damage. This is also considered a flood. Therefore, there is no coverage on the homeowner’s policy.
The good news is that flood insurance for a house not in a designated high-risk flood zone is usually inexpensive.
Where can I purchase flood insurance? It can be purchased from your insurance agent or placed by your mortgage company.
Ask you agent for information about a Flood Insurance policy.