Am I Required to Have Flood Insurance?
If you’re in possession of a homeowner’s insurance policy, chances are that it does not have a provision protecting you in the event of a flood. In fact, this is a common misconception among homeowners. A survey conducted in 2013 found that 44% of Americans were under the impression that they were covered against flooding, but only 15% reported having purchased flood coverage. Since most policies don’t cover flood damage, it is always a smart idea to consider such coverage.
When is Flood Insurance Required?
If your home falls within an area at high-risk for flooding and your mortgage is serviced by a federally regulated or insured lender, they are obligated to require you to maintain flood coverage on your property. However, you may want to consider flood insurance even if you are not in a high-risk area since more than 20% of flood insurance claims are in low to moderate risk flood areas. Additionally, the average flood claim is about $30,000 and can be much higher in certain cases.
Though flood insurance is offered through the NFIP, the policies themselves are sold and administered by private insurance companies and are usually not expensive. Keep in mind that most flood policies don’t take effect until 30 days after signing the policy, so proactively buying coverage before the rainy season is always a smart idea.
To learn more about flood insurance and whether or not it’s right for you, contact Butler Mortgage. Our professionals have been helping Central Florida families like yours to get the financing they need for more than 20 years. For questions, or to speak with one of our representatives, call us today at 407-931-3800.