It doesn’t matter where you live within the United States, all areas are in danger of flooding. All 50 states have been known to experience flooding at some point or another.
Flooding is a huge possibility at any time, therefore it is important that you know your options when it comes to flood insurance. Flood insurance is reasonably priced, and well worth having as a preventative. If you live in a high flood area, you are much better off taking this precaution rather than suffering as an after result. Lenders in these types of areas actually make flood insurance a requirement.
Obtaining Flood Insurance
There are a variety of community insurance agents that offer flood insurance. These agents participate in the National Flood Insurance Program, which is assisted through the United States government. Flood insurance can be transferred over if the home is sold.
Homeowner insurance does not cover flooding, that is why it is necessary to purchase a flood insurance policy separate. If the home is close to a high risk flood area, you will experience a decreased premium if the home has not had a claim against it.
To find out if the home has had a claim, you should:
- Request a C.L.U.E. Report
- Ask the seller to provide a disclosure or TDS
- Have the Home Inspected
Decrease premiums could be granted if the community is included in the Community Rating System.
Cost of Flood Insurance
The cost of not having flood insurance is a lot more than purchasing it. With just one inch of water, you could experience hundreds and thousands of dollars in damage.
Here are three types of Flooding policies available.
- Coast - high premium, but insures the structure and the contents. Cost around $5,000 to $2,200 each year.
- High Risk – if no previous claims have been made on the structure, then you could receive a discount on premiums. Cost about $2,400 to $1,000 a year.
- Preferred Risk – cost about $317 a year if no claims have been made.