Do I need flood insurance?
Flood insurance is required for properties located in federally designated flood areas as determined by FEMA (Federal Emergency Management Administration). When you apply for a Mortgage or Home Equity Loan with PFFCU, a flood determination certificate is purchased to determine if you are in a flood plain. It is important to note that normal homeowners insurance does not cover flood losses.
Did you know that your homeowners insurance does not cover water damage due to natural flooding? Overflowing rivers, tidal surges, city storm drain backups, and storm driven rain may flood your home but unless you have specific coverage against these perils, you’re likely on your own. In addition to natural flood disasters, your homeowner’s insurance policy most likely specifically excludes flooding due to sewer backups and “seepage.” Some insurance companies do offer special endorsements for coverage due to sewer backups. If you want this type of coverage, call your insurance agent and see if it’s available. Water seepage is considered a maintenance issue and is not generally covered by insurance. Your best protection against water seepage is to evaluate and maintain your home. Flood insurance is available to cover your home against flooding. This type of insurance is often referred to as a “single peril” policy.
The answer: YES. While a mortgage company may Bayshore_floodonly REQUIRE a homeowner to carry flood insurance in certain flood zones, , here are some facts every homeowner should know. Just a glimpse of flooded Bayshore Boulevard tells the story 1.One in Four flood claims, are in a low -moderate risk zone! Chances are good that nearly 25% of those homeowners did not have flood insurance because it was not REQUIRED by their lenders. 2. A car can be swept away by just 2 feet of water! 3. Flash floods occur in all 50 states! I am sure you recall the flash floods that have occurred in the U.K. and various parts of the U.S…areas that are NOT flood zones. 4. Homeowners Insurance generally will not cover rising water . That coverage requires a separate flood insurance policy. 5. You must add contents coverage to a flood insurance policy, if you want your belongings to be covered. 6.
During the last several years the subject of flood insurance has become somewhat controversial. The gist of the controversy revolves around homeowners believing that they have protection against flooding when, in fact, they do not. The aftermath of hurricane Katrina truly brought this subject to the fore as many hundreds of homeowners attempted to file claims and were subsequently denied because they did not have flood insurance. Hurricane Katrina is just one of the many natural disasters that have occurred, causing thousands of homeowners to lose their homes due to flooding. Knowing, for certain, whether or not your home is insured against flooding should be a priority for all homeowners. Homeowners should understand that there is a huge difference between water damage and flooding that is caused by nature. Water damages, such as happens when a water pipe breaks and flood the floor, are usually covered in a homeowner’s policy. This type of damage is often listed in the policy.
