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If you live in a 100-year floodplain and have a mortgage, you probably don’t have to wonder if you need flood insurance – your lender has likely mandated that you have it.
If flood insurance is not required as a condition of your loan, you don’t necessarily have to carry it. However, there are a few things that you should consider:
• Flooding can happen anywhere, anytime.
• Even a small amount of flooding can have disastrous financial consequences. According to the National Flood Insurance Program, one foot of water can cause $27,150 of damage to a 1,000-squarefoot home, and the average flood claim is over $46,000.
• If you think a regular homeowners insurance policy covers flooding, even that caused by heavy rains or melting snow, think again. You actually need a separate flood insurance policy to cover these things.
• No matter how well you think you can plan for a flood, the costs may be way more than you anticipate. Unless you have tens of thousands of dollars simply sitting in the bank waiting to pay for enormous emergencies, it may be better to get a flood policy. Obtaining coverage in moderate- to low-risk areas could cost less than your monthly cellphone bill, and it could very well save you quite a chunk of change if the worst were to happen.
For more information about your flood risk and the potential cost of a flood to your home, go to https://www.floodsmart.gov/floodsmart/. Then call our agency and we can help you get started on this important policy.
