| Did you know that your homeowners insurance policy | | | | building type, as well as your location. The flood zone in |
| probably does not cover flood damage? Too many | | | | which you're located will have a drastic affect on your |
| homeowners find this out the wrong way, by shelling | | | | insurance rates. You'll also need to consider the |
| out thousands of dollars to repair damage from a | | | | potential amount of damage to determine how much |
| flood. The average home incurs $30,000 of damage | | | | coverage you need. There is a 30 day waiting period |
| following a flood, and you don't even need to live near | | | | before it takes effect, so don't wait until a flood is |
| a body of water to suffer flood damage. During the | | | | predicted to investigate your insurance options. |
| life of a typical 30 year mortgage, your home has a 26 | | | | What if you don't want flood insurance? |
| percent chance of flood damage, as opposed to a 9 | | | | Federal law requires flood insurance in high risk areas; |
| percent chance of fire. If you live in an area where | | | | your mortgage company may also require you to |
| your house is at risk of flooding, protect both your | | | | secure it before your financing can go through, since |
| home and your wallet by considering flood insurance. | | | | the area has a substantial risk of flooding during the |
| Do you need flood insurance? | | | | lifetime of the loan. Check the FEMA flood maps to |
| Most people don't realize it, but no matter where on | | | | determine whether flood insurance will be required. |
| the planet you are located, there is always some risk | | | | In some cases, specific areas have been built up so |
| of flooding. This risk varies from very high to very low. | | | | that their elevation or the elevation of the building itself |
| Most homes fall into the moderate risk category. To | | | | no longer places the area in the flood plain, even |
| determine your risk, look at the FEMA flood insurance | | | | though surrounding areas are at a lower elevation and |
| rate map (also known as a FIRM) for your region. | | | | are therefore susceptible to flooding. If this is the case, |
| Floodplains are expected to flood periodically, and are | | | | and you want to opt out of the insurance, you'll need a |
| described by the expected frequency, such as an | | | | special type of land survey known as flood |
| annual floodplain or a 100-year floodplain. If you're in a | | | | certification. This survey allows you to apply for a |
| flood plain, you should consider purchasing flood | | | | Letter of Map Amendment (LOMA) or Letter of Map |
| insurance, since it is a reasonable assumption that a | | | | Revision (LOMR), the only way to get out of buying |
| flood is likely during your lifetime. | | | | the required insurance. Depending on the structure, an |
| How much is it, and where can you get it? | | | | Elevation Certificate from a licensed land surveyor |
| The National Flood Insurance Program sets flood | | | | may also be required to show that the building itself is |
| insurance rates in the United States. Coverage may | | | | constructed to be higher than the flood level. These |
| be as low as $100 per year. Shopping around for flood | | | | certificates can reduce the amount of flood insurance |
| insurance isn't necessary, since the NFIP sets the | | | | you must purchase or even remove the requirement |
| rates. The rates depend on your home's size and | | | | entirely. |