Do I Need Flood Insurance?

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How Would You Know if You Need Flood Insurance?....5

Whether or not you need flood insurance depends on a variety of different things specific to your situation. Find out if you 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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Video Transcript

Hi. I'm Joel Miller, insurance agent and mortgage banker, of Wall Street Capital Advisors. Many people ask the question: Do I need flood insurance? And the simple answer is, it depends. It depends on the designation of the particular property that you're in as to whether it's considered to be in a flood zone or not. There's actually four different designations that FEMA uses. Two of those designations are broken down between a 100-year flood plain, which means that FEMA determines that there is a one percent chance that your home will flood, or a 500-year flood plain which means that FEMA believes there is a .2 percent or two-tenths of one percent chance that your home will flood. In those cases, your mortgage lender is required to put flood insurance on the property or have you put it on the property before that mortgage can close. If you are outside of that zone, then you might not have to have flood insurance. However, it is something you may want to consider. The reason why is because flood insurance, as most people are not aware of, gives you an additional layer of protection above most homeowners' insurance policies, where they actually stop off. Let me give you an example. Let's say, for an example, a storm passes through the area and a tree falls down and hits your home. That tree, perhaps, causes damage to the roof and, as a result, the roof needs to be repaired. But, if it was during a storm, there might be water damage as well that is a result of the ensuing rain that floods into the home after the trip hits it. Did you know that your homeowner's policy will often just cover the roof and not cover the additional damage to the home by means of the water? And you know as well as I do that water travels. So, if it gets inside your home and filters throughout the home, tremendous amounts of damage can actually take place. So, a flood insurance policy is designed to give you that additional layer of protection in order to protect against that, up to $250,000 of additional coverage you can have in case there is water damage to your home. So, again, the question is: Is flood insurance necessary? Well, it definitely depends, but it should be considered as part of the protection that you have on your home. I'm Joel Miller, insurance agent and mortgage banker, with Wall Street Capital Advisors.


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