How to Know When You Need Flood Insurance

You have spent a lot of your hard-earned money to buy your home or commercial property. You love and cherish it. Unfortunately, disaster can strike in an instant. Flooding is a real concern for properties across America, specifically along the shores of the ocean or lakes or on the banks of rivers. So, flood insurance is prevalent to countless properties and their owners. This is because it helps provide financial protection if floods damage your home or business. Yet, people are often confused about who needs flood insurance. Here are some basic criteria to think about when determining if you need flood insurance:

• Flood Zones: Flood zones are areas determined by professionals who use scientific data to determine areas prone to flooding. These zones are labeled based on the likelihood of flooding and there are numerous types of flooding. For example, if you are in a 100-year flood zone, your property has about a 1-percent chance of flooding. If you live in an area with a high risk of flooding, you will need to have flood insurance for your property.

• Mortgage Terms: Mortgage companies will require flood insurance for your property. This is because they put up a significant portion of the money to buy the property and need to ensure that they will get their investment money back if a disaster were to happen. Check the terms of your mortgage to determine if they require flood insurance.

• Property Terrain: Properties at the base of sloped terrain are prone to flooding. Water naturally moves down towards the base of sloped terrains like hills and mountains, causing the water to pool at the base.