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Important Facts About Flood Insurance

The most recent issue (March) of Florida Realtor had an interesting article about the National Flood Insurance Program and related issues. Here are some of the key things you should know:

  • Under the federal National Flood Insurance Program (NFIP), homes and businesses in high-risk areas (waterfront or low-lying communities) are required to have flood insurance to receive a mortgage loan from federally-regulated or insured lenders.
  • The NFIP is scheduled to expire on Sept 30 of this year unless Congress reauthorizes it.
  • Even properties in moderate and low-risk zones may be subject to flooding.
  • Buyers may purchase flood insurance only through an insurance agent not directly through the NFIP (rates do not differ from company to company or agent to agent).
  • Rates depend on several factors, including whether the building is residential or commercial, when it was constructed and the elevation of the property.
  • A property’s location on the NFIP flood map may determine whether a lender requires coverage.
  • Buyers may purchase a policy regardless of where their property is located.
  • The contents of a home are not typically covered by flood insurance.
  • There’s generally a 30-day waiting period from the date of purchase until the policy takes effect.
  • In some cases, a buyer of a property may be able to assume the seller’s flood insurance policy.
  • Flood zones are determined by the Federal Emergency Management Agency (FEMA) which prepares detailed maps indicating the likelihood of flooding during the 30-year period of a mortgage loan. To determine the flood zone location of a property, go to the FEMA site (http://msc.fema.gov/portal).

 

Filed under: Blog by Erin Hudson

Grande Realty Team

PATTY VISCONTI
Realtor

Phone- 407-234-8426

Fax- 407-641-8627

patty@grgorlando.com

Erin Hudson
Broker Sales Associate

Phone- 407-694-3489

Fax- 407-641-8627

erin@grgorlando.com

Patty Visconti - Grande Realty Group

PATTY VISCONTI
Owner/Realtor

Phone- 407-234-8426

Fax- 407-641-8627

patty@grgorlando.com

Erin Hudson - Grande Realty Group

Erin Hudson
Broker

Phone- 407-694-3489

Fax- 407-641-8627

erin@grgorlando.com

Grande Realty's Blog
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