How to Protect Your Home With Flood Insurance From AAA

Floods can destroy homes and businesses.

If your property is in a flood zone, you will be required by law to obtain flood insurance through the federal government. The federal government is the only entity that provides flood insurance; however, companies like AAA will provide the application, help you to fill it out, and keep it on file in case you ever have questions about your policy.

Instructions

1. Contact AAA when you are buying a home. Before a home loan can close, the lender must determine if the home requires flood insurance. A typical homeowner's policy does not cover flood damage. To determine whether the property is in a flood zone, you must submit a Standard Flood Hazard Determination Form provided by the Federal Emergency Management Agency (FEMA). If the home is in a flood zone, the lender must retain the form for the life of the loan.

2. Contact AAA after receiving notice from your lender that your home requires flood insurance. You will have 45 days to obtain flood insurance after receiving notification. Typical flood insurance protects the structure of the home and its content. The premium depends on the level of coverage.

3. Contact AAA any time you think that you may be residing in a flood zone. Flood zones sometimes are expanded when mapping updates take place. Your lender may not contact you the moment your home is considered in a flood zone. Check with AAA annually to make sure that you are in the safe zones.

References

• Federal Deposit Insurance Cooperation
• American Automobile Association

Resources

• American Automobile Association