Whether you’re in the process of buying a new home or you just paid off your mortgage, at some point, you’re going to ask yourself, “Do I need flood insurance?”
Some lenders require homeowners to obtain a flood insurance policy. However, some do not. It generally depends on the risk of flooding around the home.
A flood is “an overflow of water onto land that is normally dry.” A flood in one area can look different from another by covering just a few inches of land in water versus several feet.
A standard homeowner policy doesn’t cover flood damage. Sure, it may cover interior water damage from a burst pipe or a tornado. But, it won’t cover damage by floodwaters, hurricanes, excessive rain, or a broken dam.
You have two options to purchase flood insurance. You can google, call, or check out:
– Private insurance companies
– National Flood Insurance Program (NFIP)
Private flood insurance is typically provided as a secondary policy on homes with a primary homeowner insurance policy. Call your existing insurance provider and get a quote on a flood policy.