Do You Need Flood Insurance on Your Home?

Published by julia | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate

Most homeowner insurance policies do not specifically cover damage from natural floods. If you live in an area that is near rivers that are prone to overflowing, or near the beach or any storm drain backups, then you may need to seriously consider getting a flood insurance rider on your homeowner’s insurance policy, otherwise you will be out of luck if your home sustains damage due to any type of natural flooding. Some mortgage companies will actually require you to purchase flood insurance if you live in certain areas, because they want their investment in your home protected.

Even if you get a flood insurance rider, it might not cover certain events, such as sewer backups or seepage that can damage basements and ground level housing. You may have to purchase special addendums to the riders to cover sewer related flooding events. Not every homeowners’ insurance company offers these riders and addendums, so you may need to do some looking around to find the policy that you need.

It is also important to remember that there is usually a 30 day waiting period from the time your policy is purchased until you can actually receive protection under it. That is why it is a good idea to buy flood insurance well before any typical flooding seasons in your area, such as hurricane season in the south, or the spring thaw in the north. In fact, some insurance companies in the south stop selling flood insurance policies during hurricane season, and you won’t be able to get a policy until after the season has ended. Therefore, it is a good idea to pay close attention to the weather cycles in your area to know when the ideal time would be to buy this insurance.

Of course, not everyone is going to need flood insurance. If you don’t live near a body of water and your house is not in a flood plain, then the chances of you needing this type of insurance are small (though exceptions have been known to happen). If you don’t live in a flood plain area, then purchasing flood insurance is entirely up to you.