Flood Insurance: Do You Need it
If you have ever been one of the unfortunate one’s to have lived through a flood, you know first-hand how terribly devastating that can be. Floods can not only destroy your home and belongings, but in the aftermath of a flood, they can bring to life: bacteria, mold, and unsafe living conditions. Floods are the most common natural disaster in the world, not surprising — they cause billions of dollars in damage and a slew of claims yearly. Your real estate agent, Dennis Mahafkey, is well informed about flood insurance.
Here are some of the more common reasons for flooding to occur:
● Flash Floods
● Heavy Rains
● New/Under Developed Areas
● Tropical Storms (a common occurrence in Florida)
Many people assume that if you do not reside near a body of water, you are not at risk for flooding — a common misconception. A shocking estimated twenty five percent of flood insurance claims, come from homes that are located in low risk flood zones. This is due to floods commonly caused by rising water in lakes or canals, considerable amounts of rain, hurricanes (Florida’s favorite natural disaster), backup of water, as well as other common household experiences. Every home is at risk of being flooded, unfortunately. That’s why people should seriously consider investing in Flood Insurance. It is alarming that many people who own homes believe that when a disastrous flood occurs, their homeowners insurance will step up and pay for the damages incurred. That inaccurate belief is quickly replaced with panic, when they check with their insurance companies and find their insurance policies do not cover damages in the case of flooding. Typically, a homeowners insurance policy will cover damages in certain situations that may arise, such as, a fire, robbery, and other incidents, excluding flood related damages. Flood damage is to be taken care of by the homeowner — directly out of their pocket. These are all great reasons to ensure you have a flood insurance plan in place.
As one would expect, flood insurance handles damages related to flooding. If you live in an area that is known to commonly flood during storms, you should buy flood insurance. Homeowners should be aware of the fact that once they purchase flood insurance, there is a thirty day waiting period before the policy goes into full effect. This means that homeowners cannot purchase flood insurance the second they hear there is a storm coming, or are worried they may be in the danger zone of flooding.
In another circumstance, if the homeowner buys the flood insurance policy while they are taking out their mortgage, then the thirty day waiting period does not apply to them. It is best to buy your flood insurance as soon as you can, rather than waiting for something to happen, or a feeling that you may need it in the near future. Waiting to buy the flood insurance policy places your home at unnecessary risk. Sometimes, it is a possibility for some mortgage lenders to make real estate flood insurance required for the loan, which in that case the lender may escrow the premiums to ensure the coverage.
So, educate yourself on flood insurance and your new home. If you are not sure where to begin, contact your real estate agent, Dennis Mahafkey.
You can find out more about — Dennis Mahafkey