First Time Home Buyer “What is Flood Insurance?”

By
Real Estate Agent with America's Network Realty Group, Inc

Flooding

 

Flood Insurance

The first time home buyer was surprised to find that flood damage insurance was not part of the standard hazard (homeowners) insurance policy.   The assumption being “insurance is insurance,” and upon purchasing a standard policy all was covered.   Thus the question “What is Flood Insurance”

 

Flood Insurance is an insurance policy which covers your property for flood damage.  The Flood Disaster Protection Act of 1973 mandated flood insurance to protect buildings located in a FEMA designated high risk flood area if the building has a mortgage held by a federally regulated lender. 

 

FEMA?  The Federal Emergency Management Agency which determines flood risk ratings based on flood history, rainfall, river flow, tidal-surge data, flood control measures and changes which occurred due to building and development.    FEMA has flood hazard maps showing the degree of flood risk of an area.  It is this designation that determines if flood insurance is mandatory and if so the rates for the area.

 

Discuss any concerns you have regarding flood insurance with your carrier.  Also keep in mind your mortgage company will keep you up to date on any changes FEMA makes to the flood hazard maps, and will notify you of any change which will affect you.  For further information visit the website of the National Flood Insurance Program at: www.FloodSmart.gov

 

Posted by

Susan Jackson, Associate Broker

Americas Network Realty Group, Inc

1532 Dunwoody Village Parkway

Atlanta, Georgia 30338

Office: 770-551-5850     Direct: 770-551-5852   Fax: 770-551-5866

Email: sjacksonhomes@gmail.com

Website: www.kstrealty.com

Americas Network Realty Group, Inc

Comments (2)

David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

If you are not in a flood zone then its still a good idea to get it. Very low cost and WATER/flooding is typically NOT covered under normal homeowners insurance

Nov 06, 2014 10:41 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Great topic, one that I cover with at the time of the preapproval. The truth is, very few understand anything about it.

Nov 20, 2014 04:39 AM

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