Hurricanes Harvey, Irma, Jose, Maria….the names have all made us take a step back and rethink flood insurance. Much has been said about what flood insurance is, what it covers, and who should carry it to protect their homes. I caught up with Wally Burbage of Allstate Wally Burbage Insurance to get the skinny:
Q - What does regular insurance cover?
A- Most homeowners policies cover fire, theft, wind, and hail damage.
Q - Why should a homeowner get flood insurance in areas where flood insurance is not required by mortgage companies?
A - Flood insurance in Preferred Flood Zones (find out what zone your home is in here with the FEMA flood insurance map finder) is very low cost. More than 25 percent of the National Flood Insurance Program (NFIP) claims are for structures outside identified floodplains, in low to medium risk areas. Floods can occur anywhere. Any home could sustain flood damage. A flood policy is the only way to cover this type of loss.
Q - Once you purchase flood insurance for your home is there a waiting period before it is covered?
A - All National Flood Insurance Program policies have a 30 day waiting period on new policies. If the home is having a title change (home purchase), then the coverage can be immediate.
Q - Is there a difference in flood insurance coverage/requirements when a someone is getting a loan to purchase a home versus one bought with cash?
A - Most mortgage companies will require flood insurance coverage in an A or V flood zone. They do not require it in any of the preferred zones. If someone is paying cash for a house, it will be their choice to have a flood policy in any zone. Payment for a NFIP policy must be made in full, but are usually escrowed.
Wally leaves us with one very important point:
Do you have flood insurance for your home? Email us NOW to get insured! It takes 30 days to get covered and if you wait until a storm is threatening it is too late!
If the worst happens and we are struck by a hurricane find the instructions for applying for disaster relief HERE!