Who Needs Flood Insurance?
When there is talk about flood insurance, there is also the usual question about who needs flood insurance. Many people have misconceptions about the answer to this question.
Other People Are Reading
-
Flood Zones
-
If you live within a flood zone, you are required to hold flood insurance on your property. If you live near a flood zone, it is recommended that you purchase flood insurance.
Mortgage Holders
-
Mortgage holders are required by law to obtain flood insurance before the close of the property purchase if they live within a high risk flood area. The insurance must be in force for the duration of the loan.
-
Business Owners
-
Business owners are also required to have flood insurance if any part of the physical portion of their business is within a high risk flood area. This only applies to the portion of the operation within the risk zone.
Renters
-
Renters are not required to have flood insurance. Renters are able to purchase up to $100,000 in coverage for personal property lost to flood damage.
Lowlands
-
It is recommended by the Federal Emergency Management Agency, or FEMA, that if you live in a low-lying area, you should have flood insurance to protect against damage from runoff or increased rainfall. Most areas just outside of flood zones can still get flood insurance coverage because the maps are usually not completely accurate.
-
