Whether you’re in the process of buying a new home or you just paid off your mortgage, at some point, you’re going to ask yourself, “Do I need flood insurance?”
Your home is one of the most expensive things you own. You need to protect it and yourself. It’s time to understand the basics of flood insurance before making a decision that could cost you thousands in premiums or repairs.
A flood is “an overflow of water onto land that is normally dry.” A flood in one area can look different from another by covering just a few inches of land in water versus several feet.
Flood insurance is a standalone insurance policy that covers damage caused by flooding. It covers building replacement costs and personal property losses.
You have two options to purchase flood insurance. You can google, call, or check out:
– Private insurance companie
– National Flood Insurance Program (NFIP)
The cost of flood insurance depends on the property’s location, age, elevation, number of floors, and price to rebuild. Although the average cost is around $700, your fee may be higher or lower.
If you live in a low-risk area, you may not be required by law or your lender to carry flood insurance. However, by federal law, if you have a mortgage and live in a high-risk area, you will be required to have flood insurance.