#AskTheDanielMtz Ep. 56: Do I need Flood Insurance?

Daniel Martinez
Jul 27, 2017 · 2 min read

Lets first start off by looking at 4 facts.

FACT: Flood are the nation’s most common natural disaster and cause millions of dollars of damage every year.

FACT: Floods can happen anywhere — more than 20% of flood claims come from properties outside the high risk flood zone.

FACT: Homeowners and renters insurance do not typically cover flood damage.

FACT: You may be required to have flood insurance.

The United States is experiencing extreme weather all over the country. In the west, soaring temperatures and a lack of moisture are fueling wildfires that continue to burn through everything in their path. Floods, however, affect nearly every part of the country. These disasters are typically unpredictable. So if you’re buying a new home the question becomes:

Do you need flood insurance? — Karen Harwood (Email)

In some cases, you may be required to have flood insurance as per the terms of sale. Usually, though, acquiring flood insurance is a personal choice. How do you know if you need it? It depends on how safe you want to be. As with most real estate queries, the best thing to do is educate yourself. Talk to your agent and look up your local area’s flood map. Is the home you’re purchasing in a high risk flood zone? If so, purchasing flood insurance is a smart preventative measure. But remember, floods also occur on properties outside of flood zones so purchase the policy at your discretion.

Should you decide to purchase flood insurance, choose wisely. Make sure you have a thorough understanding of what your policy will cover. There are a variety of policies that cover damage to the outside of the property. Your policy may also cover personal property inside of the home up to a certain amount. Be mindful that depending on where you live, your premium may be higher. Whichever coverage you choose, be sure to factor in the cost into your monthly mortgage payment.

Lastly, understand when your policy goes into effect. Is it from the date of purchase, maybe tomorrow, or will it take place 30 days from now? This may be affected by when you actually take possession of the home. Knowing when you’re covered is extremely important. Again, flood insurance may not always be required. Do the homework and get informed before making the final decision. After doing all the research, if getting flood insurance makes you feel safer, go for it. Ultimately, it’s all about protecting your investment — and a house is a big one.

Have any questions regarding this episode? Send me a message here: (832) 981–5801

Written by

HOULIVING’s expert on The Heights. As a real estate agent and native Houstonian, I believe in giving back and in building strong communities.

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