How do you know if you really need flood insurance?

If you are getting a mortgage, the lender will tell you if you are in a "flood" zone - which would be flood zones A or V or 2 digit zones starting in either of these letters. If you are in zones B, C or X, these are not considered "flood" zones for mortgage purposes & the bank will not require you to carry flood insurance. If you want a flood quote, go to your local independent agent & they should have a flood quoting program which also does instant flood zone determinations (unless there are 2 different flood zones on or near your property, in which case, the flood people, on the other end of the flood website, will map your property by hand to determine if your house sits in a flood zone). Once the flood zone is determined, they will provide you with a quote - they will need to know some details about your house. Zones B, C & X will give you a preferred rate. Anything in A or V zones will be quite expensive.
I would say MOST people should have flood insurance because MOST floods happen OUTSIDE the zones A or V. A couple of years ago there was a large flood in a neighboring town/state & they have since started to revise the flood maps so that there are more properties in the "A" flood zones.
The maximum limit you can get for dwelling coverage is $250,000 & contents is $100,000. The deductible applies to each coverage. There is very limited basement coverage & if a flood is coming, get your stuff out of there (you can leave permanently attached things & your washer & dryer but not much else)!! If you are on a mountain, you can still have a mudslide which would be considered a flood, but for coverage purposes, on a flood policy, the flood has to be above ground on normally dry land (if it is wet, swampy or gets wet every spring, this wouldn't count as dry land) & cover either 2 acres or 2 adjacent properties & do damage to your house. If the flood doesn't do this, it is not covered under a flood policy. There is no coverage for land.
There is one homeowners policy that I know that includes flood on the policy - it is with AIG Private Client. They only write houses over $1,000,000 & only give flood coverage if the house is in zones B, C or X (it is still underwritten by the Federal Govt) & they only give up to the maximum $250,000 dwelling, $100,000 contents.
Also, I believe American Modern Home still gives flood insurance on their mobilehome policies. Foremost used to but not anymore.
There is a 30day waiting period for coverage to start (after the application is signed & the premium is paid) unless the policy is required by your mortgage lender at closing. The policy is paid in full every year, there are no installment plans.
One other thing, if your town does not participate in the National Flood Insurance Plan, you cannot get flood insurance through the NFIP - Lloyd's of London used to write these policies but I don't know if they do anymore.

Technically everyone needs flood insurance. If you are talking about whether you need it for a loan then your lender will let you know. If you want to find out what zone your house is in call any independent agent. They can do a flood zone determination for you. You give them your address and they can check it for you.

In 2001, a town near me had massive amounts of rain. The town was flooding and not many people had flood insurance. They are now going thru the same thing. They are going thru another major flood due to rains in the area.

Flooding is not covered on your homeowners policy. If you live in a community that participates in the National
Flood program you can get flood insurance. If anyone ever tells you that you can't, double check it with the city or another insurance agent. Some agents don't know enough about flood insurance to give you good advice.

Does it rain where you live?
Do you have a basement?
Are there lakes or rivers close to the house?
If you go out side are you at the top or bottom of natural land slant?
Use good judgement.

1) Where do you live.
2) Do you live in a "flood zone" ?
3) Call your county and ask which department determines the area you live in and whether or not it is in a flood zone.
4) If you live in a flood zone, you need flood insurance.

Are you expecting a deluge? If so, and you are not up to building an ark, consider calling a reputable insurance agent and asking: Can you advise me whether or not I live in a flood zone. If they say you do, ask for definite proof.

I checked my local weather history. Has there ever been a flood?, Is your area prone to hurricanes,etc?
Then do some research and ask your neighbors what they think and if they have it.

If you live in a flood zone

well, first, everyone lives in a flood zone, some are high risk, some are lower risk, thats based on the 100 year flood map.
25% of flood claims are filed from those in low risk flood zones, so, it can happen to anyone.
and if you do live in a low risk zone, then your premium will be really much more affordable than if in a high risk.
flood is excluded from your homeowners insurance policy.
lastly, if you live on the 2nd floor or higher, you might not even want to bother.

Um, you can't count on the "if you live in a flood zone" rule.

The only way you KNOW You need the insurance, is AFTER you have the flood, just like car insurance, house insurance, and life insurance.

Unfortunately, then it's too late to get it.

In general, if your house isn't paid for, AND you're in a 100 year flood zone, the lender will require you to get flood insurance. If your house is paid for, your agent can do a zone determination.

If you can afford a total loss on your paid-for house, you don't need flood insurance. Or fire insurance, for that matter. The MOST you can lose, is the value of the house and contents.

It's not true that you can buy flood insurance at the last minute - you pay in full, but there's a 30 day wait before it kicks in. County courthouses will show you the maps, but WON'T do the zone determination for you - they won't tell you, because they aren't experts, and it's a huge liability exposure for them. It's ALSO not true that you can only buy it if you're in a flood plain. If you're NOT in a 100 year flood plain, you can still buy it (btw, National Flood Insurance Plan is the ONLY way you can buy flood in the US for your home - no one else writes it), and it's MUCH cheaper for a "low hazard" home. Something to keep in mind . . . flood is NEVER covered under a homeowners policies, and there are LOTS of floods that happen with no coverage in place. I've seen flood claims for houses on mountains - nowhere NEAR the flood plains. But ANY water running downhill, through your house, is a flood!!

Everyone should check with their local appraisal district or at the county court house. They would know if you are in a flood plain based on the flood maps they have. You may need your most complete address (the 911 assigned) if you are in a rural area, or you will need your survey, etc. You can only get federal flood insurance if you are in an actual flood plain.Anyone can be assaulted by a flood but the risks are usually in your favor.

When the flood from Hurricane Katrina stops 2 blocks short of your home

It's a matter of degrees. Get a company who will insure you at the last minute, then wait till the water is lapping up over the back steps, then make the call...

Actually, the government decides whether or not you're in a flood zone, and then you would be required to take out a flood insurance policy. If you are purchasing a home, this is something that would be disclosed to you, and the mortgage company would make sure that you have the insurance before they will loan you the money. If you are not in a designated flood zone, then you can't get a flood policy.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.254
Copyright (c) 2011 Financial Crisis Sunday, May 27, 2012 - Terms of use - Privacy Policy