When purchasing a home within a flood zone, you must purchase flood insurance through FEMA, the Federal Emergency Management Agency. This coverage protects homeowners and mortgage companies. Protects from water damage losses to the structure and contents of your home when flood damage wreaks havoc on your home. If you live in an area prone to flash floods, it is recommended that you go ahead and protect your assets with the additional insurance that covers flood damage.
It can also be helpful if your home is in an area with a high water table and you have a home with a basement. Basements are usually the storage compartments for all the souvenirs that have been collected for the holidays, camping gear, tools, out-of-season clothing, etc. If your basement were to flood, could you financially replace all damaged items beyond repair? This is where flood insurance would come in handy. Protect your belongings from the unexpected. Heck, no one knows when the power is going to be cut off, rendering the sump pump useless and causing water damage in a basement.
Flood insurance is the term used when purchasing flood insurance not only to protect your swelling but also the contents within your home. This insurance is not provided through FEMA, but is often obtained through your insurance provider. Your insurance company will act as an intermediary for you in all dealings with FEMA. It is important to have excess flood insurance, especially when you live in a flood prone area. Most flood zones, even 100-year flood zones, require the purchase of additional insurance to cover your home.
Many events can cause flooding. Flood damage can be caused by too much rain in a short period of time, snow and ice melting too quickly, a pool leak, or a clogged storm drain which, in a subdivision, can cause a massive problem for homeowners.
It is important to research the area in which you are interested in buying a home. It is important that you add flood insurance to your budget when planning to buy a home within a flood zone. The cost of flood insurance will depend on several factors; the size of your home, its value, and the risk associated with the area in which your home is built. The expense can add hundreds of dollars to your insurance policy, so it’s something you really need to analyze before signing on the dotted line. Most mortgage companies are honest when they offer a mortgage about the type of homeowner and flood insurance the buyer will need. It is very important to be covered in the event of a natural or accidental disaster.
