Do You Really Need Flood Insurance if You’re Not in a High-risk Zone?

Flood insurance can be an essential investment in your financial security and your home’s safety. However, these policies may also represent a significant expense, as you’ll likely need to purchase additional coverage beyond that available through a standard homeowners, renters or condo insurance policy. This may make you wonder if flood coverage is necessary if you’re not particularly at risk. At Casual Insurance Group, we can help you tackle this question.

What Are Flood Zones?

The Federal Emergency Management Agency (FEMA) classifies areas throughout the country based on their perceived flood risk. These rulings are based on various criteria, including proximity to bodies of water, elevation and topography, and local flood history. As their name suggests, high-risk flood zones are areas where FEMA has determined that rising waters have a particularly good chance of impacting properties. Meanwhile, low- and moderate-risk areas are generally less likely to experience such events.

Is Flood Insurance Required?

Although there are no sweeping laws regarding flood insurance, certain other obligations may apply. For example, many homeowners who have received FEMA aid for flood-related losses are required to carry coverage in order to maintain eligibility for future benefits. Additionally, many mortgage lenders may mandate coverage to protect their investment in your home.

Why Is Coverage Important?

Flood insurance is often advisable even if you’re in a low- or moderate-risk flood zone and are not subject to formal requirements. According to FEMA, floods have affected 99% of U.S. counties since 1996, inflicting extensive property damage and financial losses on residents and businesses. Given that these disasters are typically excluded from standard policies, you’d potentially be on the hook for significant out-of-pocket costs without appropriate coverage.

We’re Here to Help

Contact Casual Insurance Group in West Palm Beach, Florida, to learn more about flood insurance and find the right coverage.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.