FAQ: Do I Need Flood Insurance?
Posted in Home Insurance
September 18th, 2009
It’s probably accurate to say that most people are looking for as many ways to avoid paying for insurance coverage as possible; however, this isn’t an easy feat if you live in an area that requires flood insurance. Of course, not everyone needs this special coverage because their home is not threatened by flood conditions.
So how do you know if you need it? And if you find that you do, what should you know about obtaining coverage? It’s time to get answers to these questions so that you can make the right decisions for your home and finances.
Do I Need Flood Insurance?
When you buy a home inan area that participates in the National Flood Insurance Program (NFIP), you will be informed by your home insurance provider that you will also need flood insurance coverage. If you have obtained a mortgage from a federally-regulated financial institution, it may be mandated by FEMA that you acquire insurance to cover the cost of replacing the home. In other instances, you may not be required to obtain this insurance; however, it may be highly recommended to financially protect your home in caseriver, lake, or ocean waters rise dramatically. It’s best to check with your insurance company to learn whether you need coverage.
Flood Coverage Basics
Once you’ve connected with an insurance company that you would like to purchase your flood insurance through, it’s good to know how much to buy. The law only requires that you purchase enough coverage for your home’s loan balance; however, it’s better to protect the equity in your home as well. What’s the point in paying so much into your home just to lose it in a flood and have to come up with more money to rebuild? It’s not fair to you!
If you’re worried about cost, it’s good to know that many policies average about $700 annually. This amount pales in comparison to the hundreds of thousands you may have to come up with to pay for repairs or rebuilding costs out of pocket.
So have you determined that you need flood insurance? If so, then it’s time to get out there and find the right coverage for you!
If you’re worried about cost, it’s good to know that many policies average about $700 annually. This amount pales in comparison to the hundreds of thousands you may have to come up with to pay for repairs or rebuilding costs out of pocket. – true!
It’s best to check with your insurance company to learn whether you need coverage. – just make sure they are honest!
FEMA pay’s the insurance industry $ .71 cents of every dollar in premiums it collects. One Congressman called the NFIP “the worse federal program he has ever seenâ€.The NFIP has paid out only $11.6 billion dollars in claims since 1978.The NFIP owes the US Treasury 20 billion dollar.FEMA has been unwilling to correct bad data used in new flood maps. The NFIP puts the burden on the tax payers to correct bad data used for this new insurance maps.Let’s stop this waste.Let’s help balance the budget. Let’s cut this wasteful federal program.Tell your Congressman and Senators not to fund the NFIP.Stop the National Flood Insurance Program