The Mystery of Flood Insurance
One of the most common questions we get asked is if or why someone needs flood insurance. For background,the flood insurance program is run through the Federal Government. They make the rules and rates.Through their maps they determine which areas are and are not in flood zones.If you are in a flood zone the rate is based on which specific flood zone you are in and what the elevation factor of your property is. This is done by a flood elevation certificate which any agent or title company can set up for you.
If you are not in a flood zone It does not mean the big guy upstairs is going to spare you from any floods. In fact half the areas in Florida that get flooded are not in flood zones,go figure. There is a flood policy for these risks called a Preferred Risk policy that has set coverages and price choices kind of like a Chinese menu.
If you have a mortgage the mortgage company will require you to have flood insurance.Try and cancel and they will put forced place coverage which will be almost 3 times as much.
I have clients who say “Where I live I am never going to have a flood”..probably but part of a hurricane is a flood and if you live inland then by the time the storm gets to you it will probably be a lot of rain.If you live near or on a lake then the chances are even greater.
If you decide to get a Preferred Risk policy there is a 30 day wait unless you are closing on a new property.
Call or come by our office to get some rates for Flood Insurance before a storm closes in on us