Flood insurance is becoming a necessity for many homeowners, and is mandatory in certain areas that are flood prone. If you live in an area that has not had floods for many decades, if ever, and you are wondering if you should be paying extra for other insurance benefit, read on to understand more about who should get flood insurance and why it can be helpful. There are also a few tips to understand how to get insured for the right amount based on various parameters.
Is Flood Insurance Required for me?
This depends mainly on where you live and if it is classified as a flood prone area or not. If it classified as flood prone, you should absolutely get a flood insurance plan. However, with the changes in climate and many regions receiving record rainfall, snow and registering record flood levels, it might be a good idea to at least take a good look at whether there are any chances at all that your region and your home, may get flooded.
Areas that have been getting flooded in recent years may need to get additional insurance cover to compensate for the losses due to such flooding henceforth. If you have incurred expenses to repair and clean after flooding in your home, it is best to get an insurance cover.
How much should I be insured for?
The amount of flood insurance you buy depends on a few different factors:
- If you have received a grant from FEMA’s Individual Assistance (IA) Program even once, it is mandatory to have a flood insurance at that address from then on which at least matches the maximum FEMA grant amount. Absence of insurance will make you ineligible to claim any more assistance.
- If you have received assistance under Build It Back, the same rule as the IA applies. You have to have an insurance plan that covers at least the maximum assistance amount under Build It Back. No insurance means no more assistance from any government bodies for flood rebuilding.
- You have to get a flood insurance plan if you buy a home with a federal insured mortgage plan, like the VA or FHA. You can be penalized if you do not have flood insurance till the time your mortgage is not completely paid off.
If you are unsure of whether you need a flood insurance plan for your property, it is best to consult a Florida insurance expert and check if other homeowners in the area have purchased flood insurance plans.
