If you live in a floodplain or an area that experiences frequent flooding, you probably already know the answer to this question and might have been required to purchase a flood insurance plan when you gained ownership of your home. However, a huge majority of renters and homeowners are not aware that their property would not be covered in the event of a flood. Some might count out their risk of a flood all together, only to have the seemingly impossible happen a few years down the road.
Flood coverage is not part of a normal home or renters insurance plan. It is extra, yet necessary coverage that will cover your home and property if you become a victim of the natural disaster that is flooding. Floods destroy homes and lives every year, and the ones who are at the highest risk for having their lives destroyed are those with no coverage. Here are some questions to help you decide if you need flood insurance.
High Risk Flood Zones
A high risk flood zone is categorized by the National Flood Insurance Program as an area that has a 1 in 4 chance of experiencing a flood during a 30-year mortgage plan. If you used a federal lender to obtain a mortgage with which to purchase your home, you have already been required to purchase flood coverage. This federal mandate protects the investments of both the individual and the lender. If you did not go through a federal lender, investing in an adequate flood insurance plan is still highly recommended due to the likeliness that you will experience flooding.
Moderate Risk Flood Zones
Flood insurance is not a requirement in these areas, but it is important to point out that those who live in moderate risk flood zones do submit one fifth, or 20 percent, of all flood insurance claims. This is perhaps the most at risk for experiencing a flood and having no coverage. A survey conducted by the National Flood Insurance Program discovered that nearly 50 percent of the population thought that their home would be covered during a natural disaster when only a small percentage actually had full coverage. Even low risk areas experience flooding.
Undetermined Risk Zones
Some areas in the country have not been assessed for their flood risk level. That does not mean that these areas could not possibly experience a flood, simply that the risk has not been determined. People who live in these areas are still encouraged to purchase a flood insurance plan.
Would you be covered if your area experienced a flood disaster? To find your area’s flood risk level, visit the National Flood Insurance Program’s risk determination map. If you would like more information on how you can insure your home, visit our flood insurance page or contact a representative with Mallory Agency today.