Q & A: Should I Self Insure for Flood Insurance in Martin County, FL
This is solid information. this does not just apply to Martin county, but St Lucie, Broward, Palm Beach and any area in Florida if you ask me. While it is necessary to have hazard insurance it will not cover flood, and many people do not realize that. Even if you are not in a flood zone and are not required to have flood insurance if you are flooded your house insurance will not cover you.
Q & A: Should I Self Insure for Flood Insurance in Martin County, FL
Many residents in Martin County, FL live outside of designated flood zones and have elected not to participate in the National Flood Insurance program that is administered by FEMA (the Federal Emergency Management Agency). This is an individual decision that each home owner can make, but please keep the following in mind:
FEMA continues to actively adjust their flood maps and areas of flod risks. Should you live in an area that is fairly low (and most of Florida falls into that category) you might one day find yourself in a designated flood zone. If your nsurance company catches this, you will be required to get flood insurance. If this is a second home, be aware that in the future, FEMA will be phasing out the subsidized costs of flood insurance for second home owners. For those with policies in place, this higher cost will be phased in at a lesser percentage of increased costs per year.
If your insurance carries does not catch that your are in a designated flood zone or if you own your home without a mortgage and decided not to buy flood insurance and decide to sell your home, you may be in for a shock. Depending on the severity of the flood zone designation of the home, FEMA may decide not to issue a flood policy for certain high risk areas. If this is the case, a buyer trying to buy your home will need to be cash or arrange third party flood insurance through a high risk lender (typically some one like Loyds of London). These third party policies are very expensive.
For those homes in high risk areas with FEMA flood insurance, the policies can be transferred to the new owner.
So, the decision to self insure for flood remains an individual one, but the risks for their implication for future sale of the home should be known and discussed with your insurance agent.
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