If you live anywhere in Florida, you’re considered to be at risk for flooding. For this reason, every property owner in the state is urged to obtain flood insurance. This type of policy is specific to the type of damage caused by water and mud, which means your property and personal belongings will be covered.
Why Do You Need Flood Insurance?
There’s no telling when flooding may affect your property and this danger is increased during hurricane season. If you’re not covered, you may lose your real estate and any personal belongings that are destroyed as a result of water damage.
Some areas of Florida are considered to be at a minimal to moderate risk of flood damage, meaning the chances of flooding are less likely. As a result, homeowners in these areas may be able to obtain insurance at lower rates than those property owners living in high risk areas.
For homebuyers in high risk areas, the lender will often require that you buy flood insurance. However, even when a mortgage isn’t a concern, it’s still wise to obtain flood insurance coverage in high risk areas, because of the increased probability that your home will be flooded.
What’s Covered by Flood Insurance?
The coverage varies, depending on what you choose to spend for the policy. A minimal policy will cover the physical structure on the property, while a more comprehensive policy will also cover the contents within the dwelling. It may be wise to spend the extra money for the more comprehensive policy, because the cost of replacing furniture and electronics can become very costly.
Essentially, the cost of flood insurance is determined by a number of factors. For instance, the owner of a single-family home in a minimal to moderate risk zone can obtain $250,000 building coverage and $100,000 personal property coverage for $450 per year. However, if there have been past claims on a flood policy for that property in the past, the homeowner can expect to pay a higher price for coverage.
Regardless of your risk zone, obtaining flood insurance in Florida is as important as obtaining regular homeowners insurance. Especially when surrounded by the ocean, it may not be a question of “if” your home will flood, but when. For that reason, it’s better to be protected in advance than to lose everything in the future.