With flooding becoming more common in our ever-changing climate, you may be thinking about flood insurance. The main thing for you to keep in mind – especially if you have a basement – is that most standard property insurance policies won’t cover flood damage to your home. You will need special flood insurance. If you do plan on obtaining coverage, here are a few things you should know:
Flood zones
A flood zone is an area designated by the Federal Emergency Management Agency (FEMA) as being at specific risk of flooding. Many areas have flood zones within them, or are at least at some risk of flooding. If you are buying a new home, be aware that lenders always require flood insurance for homes in a flood zone.
If your insurance agent tells you that a property you plan to purchase is considered to be in a flood zone, and you believe otherwise, you are able to protest that decision. In many instances, part of a property, such as waterfront, will be in a flood zone, but the lowest part of the actual structure is at a much higher in elevation than the flood zone.
Keep in mind that when you shop for flood insurance, according to the National Flood Insurance Program, a one-to-four family structure can receive up to $250,000 in coverage for the structure itself and another $100,000 for the contents of the structure.
Changes have been made to the program, so ensure you discuss coverage with an insurance professional.