The majority of homeowners are well aware of the necessity of having homeowners insurance. After all, your home is your pride and joy, in addition to being one of the biggest investments of your life, so it’s natural that you’d want to protect it. But how much thought have you put into your policy? What does it cover? In case of flooding, would your home be protected?
When Is Flood Insurance Mandatory?
Did you know that the Federal Emergency Management Agency (FEMA) has maps that stipulate what areas are classified at higher risk of flooding? If your home sits within a designated 100-year flood plain, then, by law, mortgage lenders will require you to purchase federal flood insurance; without it, you will not be granted a mortgage. If your home is located within a lower risk area, your lender can still, at their discretion, insist that you buy flood insurance.
When Is Flood Insurance Recommended?
While your home may not be within the designated 100-year flood plain, your home could still be at risk of flooding. In fact, did you know that around 10 million properties are located within Special Flood Hazard Areas? And of these 10 million, only around 25% have flood insurance? This is despite the fact that within these Special Flood Hazard Areas, the risk of flooding is almost three times greater than the chance of fire damage.
Does Everyone Need Flood Insurance?
Flood insurance may not be mandatory for your local area, but that does not mean that you can arbitrarily dismiss the notion. Government-run website Floodsmart.gov lists flooding as the most common natural disaster within the United States of America. This may seem extreme, but think about how often the country receives seasonal hurricanes, substantial rainfall or even just the heavy runoff that can result from thawing snow in the spring. Any of these occasions could put your home at a high-risk of flooding.
If you think your home may need flood insurance, then there is no time like the present to get organized; after all, who knows when it will start raining? Greg Suggs Insurance Agency offer free quotes for flood insurance, from a range of reputable insurance carriers. They can help you find the policy that is best for you and your home.