Flood Insurance

Flood insurance is recommended for anyone who lives in a flood zone. You might not know it, but your homeowner’s insurance doesn’t include flood coverage. If a major flood occurs, your insurer won’t pay you anything unless you specifically purchased flood insurance. That’s why people in high-risk flood areas should have the proper coverage.

What Does Flood Insurance Cover?

Basically, this type of insurance is for property damage caused from a flood. If the damage is not from a flood, then the insurer will not cover it. A flood is considered water that comes from outside your home, like in a natural disaster. This coverage does not include damage from things such as burst pipes.

When is it Needed?

The need for flood insurance is based on your location. If you are in an official flood-zone, then you will likely need coverage. FEMA is a national program that has created and updated a flood zone map. Lenders check the map to see which properties are within flood zones.

What Determines the Cost?

This type of coverage can be expensive. It depends on where you live and how much of a risk is involved. If you are in a very high-risk zone, your monthly premiums will likely be costly. The value of your home will also affect the cost of your insurance.