The Truth about Flood Insurance

By
Services for Real Estate Pros with Paula Smith Insurance

Myth:  It won't happen to me

Fact:  you don't have to live by the water to be at risk.  Approximately 30 percent of all flood claims occurs in low to moderate risk areas.

Myth: My Homeowners Insurance is enough

Fact:  Homeowners Insurance does not cover flood damage - federal flood insurance does.  Flood insurance also covers mudflow, dirt and debris resulting from moving water.

Myth:  I don't need flood insurance

Truth;  Homeowners with mortgaged property in special flood hazard area are now required by federal law to obtain flood insurance  Lenders must comply by requiring flood insurance on the outstanding mortgage balance for the life of the loan.

Myth:  The government will pay

Fact:  To receive federal disaster assistance, a flood must first be declared a federal disaster by the US president.  Less than 50 percent of the floods that damage homes across the country every year wind up being classified as a federal disaster.

 

 

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Mirela Monte
Buyers' Choice Realty - North Myrtle Beach, SC
Myrtle Beach Real Estate

Great post Paula!  I wish you could write policy here in Myrtle Beach...

Do you mind if I use your post on my website; I will give you the credit, of course.  Please let me know. 

Thank You!

Mirela

Dec 17, 2007 10:47 AM #1
Rainer
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Paula Smith
Paula Smith Insurance - Clear Lake City, TX

It's always my pleasure to be an insurance resource. 

Feel free to repost any of my material.

Paula

Dec 17, 2007 10:53 AM #2
Rainer
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Kim Wilbourn
Kim Wilbourn Realty - Scottsboro, AL
Your Local Alabama REALTOR
I have a home listed right now, and it has to have flood insurance on it. But the house across the street does not? It is in a subdivision and all the houses on one of the streets have flood insurance unless they don't have a mortgage. My grandmother has lived in the subdivision for 66 years and it has never flooded. How can you go about trying to get this changed? Is it a long drawn out process?
Dec 17, 2007 11:01 AM #3
Rainer
4,916
Paula Smith
Paula Smith Insurance - Clear Lake City, TX

FEMA has the Corp of Engineers re-map and re-zone the flood plain every 10 to 15 years or so.  Check the date on the flood map and it will indicate the last map update.  Unfortunately , if FEMA says you are in a flood zone, it's an act of Congress (literally) to change it.  

Your customer can set an 'Elevation Certifificate'.  It's a survey that indicates where the slab sits in relation to the flood zone.  If the flood plain is , say 10 feet.  But the slab of your listing sits at say 13 feet, then the flood insurance gets a big credit. It would cost your seller, but it may be worth it as a selling point since the Elevation Certificate is transferable to the new owner.

Write me off line and I'll be happy to run that zone for you and email you the certificate.

PSmith1@FarmersAgent.com

Paula

Dec 17, 2007 11:09 AM #4
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Paula Smith

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