With Hurricanes Harvey and Irma recently wreaking havoc in Florida, Texas and the Carribbean, it seems timely to provide some information on flood insurance. (If you buy a house in a flood zone, your lender will require you to carry flood insurance and, as it can be costly, depending on what type of flood zone you’re in, it’s wise to investigate the fees before agreeing to a purchase.) The most important thing to know is that it is separate from your regular home owner’s insurance and damage to your home or the property within will NOT be covered unless you have separate flood insurance. The second thing of note is that there are caps: National Flood Insurance Program (the main flood insurance provider) covers up to $250,000 for the structure and up to $100,000 for the contents. Finally, be aware that you do not need to live in a flood plain to have flood insurance. Actually, if your home is not in a flood plain, the insurance will be less expensive. (To find out if your house is in a flood plain, call your insurance agent or follow the instructions in the video contained in this article.)
If you want to learn about flood insurance–how to decide if you need it, what it covers, how to get it, etc. click here and scroll to the expandable question section under the word: FLOODSMART. Here’s another site that provides very direct, useful information.
If you have no flood insurance, but the government has declared a natural disaster for your area, you may be eligible to receive up to $33,000 from FEMA (Federal Emergency Management Agency) and possibly a loan from the SBA (which does not require you to be a small business owner). Click here to read a good article about resources for people who have no flood insurance. If you need help determining where to find help and what your options are in the event of a disaster, start here.
