The higher the flood risk, the more likely a lender will require flood insurance in addition to a homeowner's policy. | Adobe Stock
The Federal Emergency Management Agency said everyone lives somewhere with flood risk, with the only question remaining how serious that risk might be.
Those areas are designated low-risk, moderate-risk or high-risk flood areas, FEMA and the National Flood Insurance Program reported.
FEMA created community flood maps that show flood zones, which describe specific area’s flood risks. Insurance requirements and costs get determined by flood zones. Property owners or prospective buyers who want to find out their flood risks can access flood maps online.
Damages of more than $25,000 can happen with just one inch of flooding in your home, FEMA said, its FloodSmart.gov website reported.
Above-average flooding caused by hurricanes has been reported for the past four years, with 2020 forecast to be no different, the website reported. Flood insurance is recommended for all Florida residents and any resident in an at-risk flood zone. But it does not get included in a standard homeowners policy.
Low- or moderate-risk flood zones may have reduced risk, but the threat of flooding is not entirely gone. FEMA reports that a third of insurance claims are from properties in these zones. Lower-cost flood insurance is available for these property owners as Preferred Risk Policies.
Property owners in high-risk zones must buy flood insurance if they have a federally backed mortgage as a loan condition. Lenders may require flood insurance even if your property is outside of a high-risk zone, the FloodSmart.gov website reported.
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