Flood Insurance
Did you know that everyone in Florida lives in a Flood Zone and just 6 inches of water in your home can cause over $25,000 in damage to your structure and belongings?
Flood insurance is typically offered through the National Flood Insurance Program (NFIP), which is run by the Federal Emergency Management Agency (FEMA). In addition to the NFIP, there are private flood insurance carriers that offer flood insurance policies to homeowners, renters, and businesses in participating communities. Ultimately, the decision to purchase NFIP or private flood insurance depends on your individual circumstances and needs.
Even if you don’t live in a high-risk flood zone, it’s still a good idea to consider getting flood insurance. Here are a few reasons why:
- Floods can happen anywhere: While some areas are more prone to flooding than others, floods can happen anywhere, including in areas that are not typically considered high-risk. Even a small amount of water damage from a flood can be expensive to repair, so it’s important to consider the potential risks.
- Increasing risk of flooding: Climate change and other factors are causing an increase in the frequency and severity of floods in many areas. Even if your area has not experienced flooding in the past, it may be at an increased risk in the future. Getting flood insurance can help protect you from potential financial losses due to flooding.
- Federal disaster assistance may not be enough: If your area is declared a federal disaster area due to flooding, you may be eligible for disaster assistance from the government. However, this assistance is typically in the form of a loan that must be repaid, whereas flood insurance provides a direct payout to cover your losses.
- Peace of mind: Knowing that you have flood insurance can give you peace of mind in the event of a flood. You can focus on your safety and well-being, rather than worrying about the financial impact of flood damage.
It’s important to note that standard homeowners or renters insurance policies typically do not cover flood damage, so flood insurance must be purchased separately. Nearly 1 in 4 claims come from homeowners not required to carry flood insurance by a mortgage company. Just because it is not required, does not mean it is not a good idea to buy it!