Now is the time to consider flood insurance

In the wake of unprecedented flooding in the Midsouth and other parts of the country, especially in Nashville, you may want to consider your hazard insurance coverage. If you bought a home in a flood zone and purchased with a mortgage, you were required to purchase flood insurance. Although sponsored, mandated and controlled through the Federal Government under the National Flood Insurance Program, policies are normally written by normal hazard insurance companies.

Most of us in real estate know about “flood certs” and the disclosures involved with areas subject to flooding.  If you live in a flood zone, you probably know about it, and carry insurance (at significantly higher premiums)  to cover losses should you become a victim of high water.  But what about the rest of us?  What kind of coverage do we have if our house is engulfed by rising waters, maybe for the first time since it was built 100 years ago?  What kind of flood coverage did the folks in the Nashville area who had never known they were anywhere near creeks and streams?  The answer is NONE!

My insurance agent told me that rising surface water damages are only covered by flood insurance policies through the National Flood Insurance Program, and not by normal homeowners’ hazard policies.  Pricing for policies for lower risk areas vary according to risk zone.

I don’t claim to be an insurance expert, but if you were spared from high waters last weekend, and have concerns as to what may happen next time the floods come, contact your insurance agent for more information.

Photo Credit: http://www.flickr.com/photos/tandemracer/ / CC BY 2.0

Tagged as: Flood, Home insurance, Insurance, National Flood Insurance Program, real estate