Flooding is not covered by a standard homeowners insurance policy. To determine if you need flood insurance, ask your insurance professional, mortgage company or neighbors about the flood history in your area. If there is a potential for flooding, you should consider purchasing a policy that covers the structure and your personal belongings.
While some flood zones are obvious, coastal areas, others might not be as apparent. Some times depending on the topography of the land, a home could be in a flood zone because of something like a small creek that runs adjacent to the property. If you are looking at buying a home and suspect it may be in a flood zone make sure you ask your real estate agent to find out. That information should be part of the standard disclosures.
Flood Insurance Policies are available to the public in three basic types:
- Dwelling, which covers most detached homes
- Residential Condominium Biulding Association, for condos
- General Property Flood Insurance for Multi-Family Apartments and general business property
Lenders will require borrowers to obtain Flood Insurance if a home is located in a Flood Zone.
To determine risk factors for specific properties, insurers will often refer to topographical maps that denote lowlands and floodplains that are susceptible to flooding.
Buying flood insurance compensates you for any covered losses caused by a flood, whether the President declares a Federal disaster or not-- and ALL [covered] losses are paid in full.
Additionally, partial payments are sometimes given immediately, which will help you get your life back on track even faster.
Flood insurance is a very costly type of insurance. If you are considering buying a home that is located in a flood zone you may want to weigh all of your options and take the cost of the insurance into consideration. A home is determined to be in a flood zone or not by FEMA. FEMA is the Federal Emergency Management Agency.
Many insurers in the US do not provide flood insurance in accordance to the risk factors established in some portions of the country.