Buyers Homeowners

What is Flood Insurance?

Did you know that a standard homeowner’s policy does not include flood insurance? Just an inch or two of water can be devastating in a home – so flood insurance is definitely something to look into.

Almost every state has areas considered at high risk for flooding. These areas are called floodplains. A floodplain is an area of low-lying ground near a river or a stream which floods when the water level reaches flood stage – usually a result of heavy or continuous rainfall. If you live in a floodplain, most lenders require that you have flood insurance. In certain flood-prone areas, the federal government requires flood insurance to secure mortgage loans backed by federal agencies such as the FHA or VA.

The policy insures against physical damage to your home and its contents caused directly by flooding.

Don’t wait for a big storm before looking for a policy! There is typically a 30 day waiting period from the date of purchase before your policy goes into effect.

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