necessity of flood insurance

Guest

I am in the process of taking a 30 year mortgage. Is it necessary to get a flood insurance even if I am not in a flood prone area?

Samantha · Posted: Tue Dec 06, 2005 11:36 am Post subject:

Hi Linda,

Flood insurance or flood insurance coverage is meant to help in recovery from a financial ruin when your belongings get damaged in a flood. It is backed by the federal government. Also this policy is practiced by private insurance companies.

Flood insurance is relatively inexpensive and so you can go for it especially when you are taking a 30 year mortgage involving a long period. But that purely depends upon you.

If you want to cover up your belongings against flood damages, then you can go for it. It is not compulsory and is not covered in basic homeowners' insurance policies.

In the United States NFIP which stands for National Flood Insurance Program underwrites the majority of policies involving flood.

Hope you will be able to decide from this information.

God bless you.

For MortgageFit,
Samantha

Cliff · Posted: Tue Dec 06, 2005 11:44 am Post subject:

Hi Linda,
Welcome to Mortgage Fit Boards. If you are not in a flood zoned area you would not have to get Flood Insurance but that would be something you would ask the insurance company. They do charge a Flood Cert Fee which is normally a minimal cost.

Samantha · Posted: Tue Dec 06, 2005 11:51 am Post subject:

Hi Cliff,

Good to see you after a long time. As always we expect to get helpful information from you.

Thanks,
Samantha

blue · Posted: Tue Dec 06, 2005 12:05 pm Post subject:

Hi Linda,

Here is some more information on flood insurance cost which I hope can help you.

Since, you live in low risk zone so; you may be eligible for discounts. The average premium for flood insurance as in 2005 is $400 while for a risk prone zone flood insurance rate is $650 - $700.

It takes almost 30days for the policy to function after the flood insurance coverage is made.

Regards,
Blue

Guest

Hi all,

All your contributions has helped me. I am glad to find my query handled in such detail. I have heard of 100-year flood. How is it related to insurance policies?

Linda

Samantha · Posted: Tue Dec 06, 2005 12:41 pm Post subject:

Hi Linda,

100-year flood is the flood elevation that has got a chance of 1% in equaling or exceeding each year.

It is standard for floodplain management used by the federal and state agencies and by national flood insurance program to find out the need for flood insurance.

Hope this information will help you.

God bless you.

For MortgageFit,
Samantha

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