Ok, so you own a home and you need to insure it. You buy a Homeowners Insurance policy and you assume that it will protect your home from anything that might happen to it, right? Wrong! Your Homeowners Insurance policy does not protect your home from damage done by flooding.
Wait, what? So water damage isn’t covered? Well, yes and no. It all depends on which direction the water is coming from:
FALLING water, such as that from a pipe burst or from a damaged roof IS covered under your Homeowners Insurance.
RISING water, such as that from storm surge or rainwater swell is considered flooding. If you want to protect your home from Flooding, you need Flood Insurance.
In 1968, Congress created the National Flood Insurance Program (NFIP) to provide a means for homeowners to protect their homes from flood damage. The NFIP is administered by FEMA and policies are available through a partnership with several different insurance companies. Rates are set and don’t vary from one company to the next.
Flood insurance premiums depend on whether your home is in a high risk flood zone or not. Non-high risk areas (Zone X) carry premiums from $162-$430 per year, depending on the level of coverage. On the other hand, homes in high risk flood areas will have varying Flood Insurance premiums based on the elevation of the home. If your home is in one of these high risk areas, your mortgage company will require you to carry Flood Insurance. You could also probably be writing this article yourself.
For folks whose homes are in Flood Zone X, their mortgage companies don’t ask for proof of Flood Insurance. Many of these home owners figure that if the insurance isn’t required, they probably don’t need it. Remember Hurricane Katrina? One of the biggest natural disasters in recent history, and thousands of people sustained billions of dollars in uncovered floodwater damage. Here in Brevard County, 2008′s Tropical Storm Fay flooded practically the entire county. The governor was here in an airboat, pulling people out of their windows. Really.
Be smart. Protect your home. Call us for Flood Insurance.
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