Did you know that of all the natural disasters that occur in New Hampshire, Maine, and Massachusetts, flooding happens the most frequently, and causes the most damage? Around our office rarely a day goes by that a customer doesn’t come in or call about whether they should add flood insurance to their coverage portfolio. And when we see that they live right here in the New England area, our answer is a resounding yes.
Do I truly need flood insurance?
If you have a mortgage, some banks require that you do. Regardless, If you live in certain areas that are designated flood zones, you absolutely should have a flood policy. This is because some neighborhoods lie within the Federal Emergency Management Agency’s (FEMA) Flood Hazard Zones, and as such, lenders require all borrowers to purchase flood insurance.
If you don’t have a mortgage, or if your property is near water or could have be a path for water like downstream from rivers, lakes, etc, then flood insurance may also make sense.
Flood Hazard Zones versus Flood Risk Zones — What’s the Difference?
A Flood Hazard Zone is one that FEMA, Federal Emergency Management Agency, shows has a 1% higher chance of annual flooding. This translates to a 26% risk throughout a 30-year mortgage. Any homes within a flood hazard zone are required to have flood insurance in place to secure a mortgage.
A Flood Risk Zone, as defined by FEMA, is one in which the chances of annual flooding are less than 1%.
A Sad Fact About Homeowners Insurance
Many customers believe that their homeowners policy provides flood coverage. Homeowner Insurance policies do not cover floods.
