Are 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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