Flood Insurance
Do You Need Flood Insurance?
Flood Damage Insurance
Flood insurance, in some cases, is required by law. You can also get separate flood insurance through FEMA or add flood coverage through your current insurance carrier, though costs will most likely vary greatly and some companies will not even offer flood coverage.
Home-owners, regardless of whether you live in it or rent it out, are required to carry additional flood insurance if their property is in a flood zone. You can simply search on flood plain maps or flood zone maps to locate a map for your state, county or even town or city at street level. If you are purchasing a new home, your mortgage lender and even your real estate agent should be cognizant of your requirement for flood insurance.
If you are purchasing flood insurance for an existing home, there will be a 30-day waiting period after the initial purchase for the policy to become effective. You’ll also find that if a flood zone map is revised, placing your property in the flood zone, the waiting period will also be waived as long as you purchase flood insurance within the allowable legal time-frame. Lenders are required by law to order flood insurance on any property within a flood plain before the loan is closed. Coverage can vary and includes direct and indirect causes from flooding. Damage caused directly from the flooding is covered in the first instance and damages caused indirectly by mud slides, sewer back up, fire or sink holes may also be covered with a high end insurance coverage.
Insurance is something that few people completely understand. Make sure to ask your lender or agent to supply a full copy of the policy and either you or someone you trust, such as an attorney, should read it, especially if not issued through one of the nation-wide insurance companies.understand what you are paying for and what will happen in the event of a flood. It is though, ultimately your responsibility to make sure that you have adequate coverage. It is you who will bear the fines or the losses if your coverage is not up to date.
Article Source: http://EzineArticles.com/?expert=Joseph_Stutzman
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