How Would You Know if You Need Flood Insurance?

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Do I Need Flood Insurance?....5

Not every single person is going to need to spend the extra money for flood insurance. Learn how to tell if you actually need flood insurance with help from a veteran of the mortgage banking and real-estate industry in this free video clip.

Part of the Video Series: Flood Insurance
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Hi I'm Joel Miller, insurance agent and mortgage banker at Wall Street Capital Advisers. Many people wonder do I need flood insurance and they ask that question. Well you know, there's a simple answer to this question and that is if your home is closed and you have a mortgage, if you did not get flood insurance, you don't need it okay. The reason why I can say that is because in 1973 the federal government came out and they required every mortgage company to put flood insurance on any home that was considered to be in a flood zone. So if you don't have flood insurance, you don't need flood insurance. However, flood insurance is a valuable addition to any home in order to provide additional protection above where the homeowner's policy stops. Now what do I mean by that? Well what I mean by that is a homeowner's policy will cover certain damage to the home specifically related to something that happens like a tree falling on the property and causing damage to the house. Let's look that example. Let's say you have a storm pass through your neighborhood and a tree falls on your home and punches a hole on the roof. Okay, you have damage to the roof, obviously that needs to be fixed, the home insurance policy will kick in and cover that. But what if this storm also brought a lot of rain which is often very very common that could in fact be the reason why the tree fell in the first place. Did you know that in certain cases your homeowner's policy would not cover damage to the home as a result of that additional water that had entered the house? So what would you do in a case like that where you may have tens of thousands if not hundreds of thousands of dollars of damage to components of your home because of this rain? Well that's where a flood insurance policy kicks in. It will actually kick in and give you additional layers of protection against any damage that is caused from water coming in from the outside of the home. In many cases flood insurance is very inexpensive but it can provide that protection that you would really need and give you that additional protection. So what's the answer to the question as to whether you need flood insurance? Again you only need it if you're in a flood zone what's considered 100 year flood plain or a 500 year flood plain as determined by FEMA. And if you're in one of those zones your mortgage lender would have required you have flood insurance before they close out. So if you don't have it, you don't need it. However, it is something certainly to consider. I'm Joel Miller, insurance agent and mortgage banker at Wall Street Capital Adviser.

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