Do You Need Flood Insurance?

If the home you are buying is in a flood plain then the decision to buy flood insurance is very easy, the lender will not loan the money for the mortgage without the insurance.

For most, the decision is not so easy. How much flood insurance you need is based o the likelihood of a flood as well as the amount of the premium.  Usually, regular homeowners insurance does not cover flooding. To determine the likelihood of flooding in your area, first check the local flood maps.

High-risk real estate  has a 1 percent chance of flooding in any given year. It is the the homeowners responsibility to determine  the risk of water damage and flooding.

The federal government  provides flood insurance and private insurance companies service the policies, so there is no need to to shop around for the best price.  The amount of coverage you will need to determined by the value of your property and how much it would cost to repair or replace it.