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Orlando Flood Insurance misconceptions

By
Real Estate Broker/Owner with Buyers Broker of Florida

Orlando Flood InsuranceWhy need Flood Insurance in Orlando?

 The #1 disaster in the United states is flooding and Florida is no exception.  Central Florida is in close proximity to waterways and yes, there are a lot of lakes.  Heavy rains from Hurricanes and tropical storms are common. 

 

Getting Flood insurance when you buy a home is also a common "add on" and something that many home buyers do buy.

 

Here are some common misconceptions about Orlando Flood Insurance. 

  • Misconception #1:  Flood Insurance is expensive. 
  • Not so, Central Florida is located in the middle of the state and not along the coastal regions of the oceans.

 

  • Misconception #2: The home owners insurance policey will cover flooding.
  • Not exactly. While a regular homeowners insurance policy does cover  flooding, its only if it is due to a broken pipes or leaks.  It will not cover rising water due to overflowing water ways or rain.

 

  • Misconception #3:  If the home is in a low risk area it is safe from flooding.
  • Reality is that flooding can happen even if the property is in a low risk zone. 20% of flooding claims come from "low risk" areas.

 

Which home requires flood insurance?

Flood insurance is required if the property is located in a designated flood zone, determined by FEMA.  Just because it is located in a flood zone does not mean that the property will flood, just like if the property is in a low risk zone, does not mean that it will not flood.

 

This is a very common question.  Some home buyers even ask to view homes that are not in a flood zone...that is pretty much impossible.  Flood zones do change so something that is not in a flood zone today may be re-zoned "flood zone" tomorrow.  There is no way to predict.  I have a two homes on a lake...one is in a flood zone and the other is not.

 

Obtaining Flood Insurance

A home insurance agent will be able to give you a preliminary cost quote, but to get a final quote you will need an elevation certificate which can be obtained from the surveyor.

 

If you are getting a federally regulated loan and in a flood zone, it is mandatory that you have flood insurance.  If however you are paying cash, then it is up to your own discretion, to purchase it or not.  Typically it costs a few hundred dollars annually. 

 

The bottom line is this: Flood zones are prevalent in Florida, and just something that you may need extra insurance for....it should never be a deal breaker.

 

Buyers Broker of Florida helps home buyers find the best home at the most favorable terms.  We make sure that you are comfortable with your home buying experience and look forward to speaking with you 407-539-1053.

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Representing ONLY the best interest of the Home Buyer...never the seller.

 Eve Alexander Orlando Buyers Agent

 

Comments (7)

Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

This is good information. We have issues with flood zones here in New York as well. There are towns with sections that are not near water but prone to flooding in huge rainstorms and the like. 

Mar 30, 2017 03:33 AM
Eve Alexander

Kat Palmiotti I am glad that you said that because I would never think that a city like New York would have flooding problems.

Mar 31, 2017 05:41 AM
April Swenson
Coldwell Banker Ocean Shores Brokers - Ocean Shores, WA
CRS and Managing Broker - Ocean Shores Real Estate

I am on the West Coast, so I was wondering what your post would say. Thank you for the information.

Mar 30, 2017 07:46 AM
Eve Alexander

April Swenson You are welcome and thank you for your comment.

Mar 31, 2017 05:42 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Out condo in Florida is 5 minutes from the ocean and although flood insurance wasn't required we got coastal flood insurance. I guess it depends on what one think is expensive but we didn't considering the cost of damage.

Mar 30, 2017 08:01 AM
Eve Alexander

Joe Pryor I agree, and being on the coast can certainly be a bigger problem with flooding.

Mar 31, 2017 05:43 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Great information here. It's a scary topic for many, but one buyers need to consider if they are in an area where flooding can occur.

Mar 30, 2017 08:41 AM
Eve Alexander

Jeff Dowler A lot of buyers ask not be shown homes that are in a flood zone, which of course it almost impossible to pick out, not to mention that zoning may change.

Mar 31, 2017 05:44 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Mike & Eve Alexander - the title caught my eye given the recent flooding we experienced in San Jose.  Flood insurance as well as earthquake insurance carry many misconceptions.  Congrats on the Gold Star.

Mar 30, 2017 09:13 AM
Eve Alexander

Kathleen Daniels I never thought about earthquake insurance since we don't have them.  I think that could make an interesting blog.

Mar 31, 2017 05:46 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

For those that need to know...this post does the job on the subject matter

Mar 30, 2017 09:56 AM
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

Richie Alan Naggar thank you for your comment.  Flood insurance is very misunderstood by those out of our state.

Mar 31, 2017 05:47 AM