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Are You Sure You Don’t Need Flood Insurance?

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Services for Real Estate Pros with TheHousingGuru.com

floodAre You Sure You Don’t Need Flood Insurance? If you live in an area described as a “flood plain,” your lender will require you to purchase flood insurance. However, just because a survey doesn’t show your home as being in an area prone to flooding, doesn’t mean it can’t happen. In recent years more than one part of the country has been hit by what the experts call, “500 year floods,” areas that haven’t flooded for centuries. The latest of these occurred in Georgia and destroyed or damaged dozens of homes whose owners were unaware of any potential for flooding.

 

Traditional homeowners’ insurance does not cover flood damage, even though the home may lie outside the “flood zone.” Homeowners should check with local authorities to determine the relative danger to their property; and if there is doubt consider consulting an engineer. Then, if the possibility of flooding exists, buy flood coverage. The cost is minimal when measured against the loss of a home.

 

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Judy Jennings
Top Agent Plus - Middleboro, MA
Tap into Judy's real estate expertise & resources.

John - This is very good advice as the expense for the damages resulting from flooding can be extensive. I hope the homeowner in your photo had the foresight to purchase flood insurance.

Oct 20, 2009 10:02 AM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Judy - Unfortunately we had many in GA who did not have flood insurance, as they were not in "flood zones," which are normally calculated on the 100 year high water mark.  I've never owned a home with flood potential, but many don't understand how to properly evaluate the risk.

Oct 20, 2009 10:32 AM
Al & Peggy Cunningham, Brokers
RE/MAX West Realty Inc., Brokerage - Brampton, ON
Our Family Wants To Help Your Family!

Hi John,

Good advice John, we hate paying insurance, but it's one of those things that have to be done.  Guess we grumble a lot because we didn't need to call upon the Insurance Company, but we guess that's the good news.

Is that your 1080 point picture?

Oct 20, 2009 12:11 PM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Al & Peggy - I decided it was time to change the photo, and AR kept encouraging me to do so.  But regardless of what I try, you can't make an old man look young again : )

Oct 20, 2009 12:38 PM
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

John,

 

This is a very good point, even for areas that are not traditionally in flood plains. The exclusion is still contained in the policies and it can be removed by an endorsement. Sometimes there is really no additional premium when there is no flood plain or a very limited one.

 

Brian

 

 

Oct 21, 2009 12:14 AM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Brian - As we've recently discovered in GA, it's better to err on the side of caution.

Oct 21, 2009 01:30 AM
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

John, excellent point. What happened in the photo. Did they have insurance?

Oct 21, 2009 06:59 AM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Janice - Let's hope they had insurance; I don't know. 

Oct 21, 2009 07:04 AM
Terry Chenier
Homelife Glenayre Realty - Mission, BC

John,

It's funny. Insurance is a relatively inexpensive iten. I look at the news every day where people in 3rd world countries are wiped out in floods and they can't buy it.

Oct 21, 2009 05:33 PM
Leslie Helm
Tennessee Recreational Properties - Jamestown, TN
Real Estate For Trail Riders

Hi, John. I lived in Florida for a short time....arrived in 2004, just in time for Bonnie, Charley, Frances, Jeanne, Ivan, Katrina, Rita, Dennis et al...which is, as George Strait put it, why I now hang my hat in Tennessee!! Alot of homeowners, and alot of insurance companies, learned alot..with the insurance companies trying to weasel out of paying for damage if the homeowner didn't have flood insurance. I remember hearing something about "wind-borne water damage" which apparently is different from plain old water damage so, if you're going to get flood insurance, it's a good idea to read the fine print!

Oct 21, 2009 10:52 PM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Terry - The sad part of the GA story is that many of those who lost their homes were not in a "flood zone," and didn't think it necessary to purchase flood insurance.

Leslie - Yes, always know what you're buying.

Oct 22, 2009 12:18 AM