Flood Insurance

What You Need To Know About Flood Insurance

One of the reasons we love living in South Florida is our proximity to beautiful bodies of water. From Sarasota Bay to the Gulf of Mexico, the views are spectacular; and rivers, streams, and ponds provide a serene backdrop for many area homes and properties. Flood insurance is required by lenders in specific communities that are most at risk, but all Florida residents should consider adding this protection to their policy.

Flood insurance is not a part of standard insurance coverage and must be obtained on a separate policy or rider. Many residents have been surprised to learn that their homeowner’s insurance policy does not cover water damage caused by flooding or groundwater issues. Therefore, even if your lender does not required to obtain flood insurance, it is important to have the expertise of an insurance professional to help you decide the right coverage level for your home.

Types of Coverage

Flood insurance consists of Dwelling (Building) and Contents coverage. Standard maximum limits are set at $250,000 building and $100,000 contents. Understanding that this may not be enough for many area homeowners, Excess Flood insurance can be obtained in the private marketplace.

Dwelling Coverage May Include:

• The insured home or building, and its foundation
• Plumbing and electrical systems; air conditioning systems, furnaces, and water heaters
• Appliances including dishwashers, refrigerators, and stoves
• Carpeting installed over unfinished flooring such as concrete
  

Contents Coverage May Include:

• Personal items such as clothing, furniture, and electronic equipment
• Carpeting and flooring not included in dwelling coverage
• Appliances not included in dwelling coverage
  

FEMA’s Role in Flood Insurance

The federal government runs the flood insurance program, and regulations and rates are set on behalf of the private insurance companies.

The Federal Emergency Management Agency (FEMA) has drawn up maps dictating which areas are most at risk, categorizing communities into several flood zones. If your home is located in a designated flood zone and you take out a mortgage, a flood insurance policy will be required.

Your flood insurance rates are calculated based upon your flood zone, the elevation of your home, the age of your home, and your chosen deductible. You can also lower your flood insurance rate if your home has flood venting.

Identifying Your Flood Risk

The professionals at The COTA Group can help you determine in which flood zone your home is located, or check the county property records or FEMA flood maps.

• Flood insurance coverage is required in flood zones A and V, with variations reflecting proximity to ponds, rivers, streams, or coastal areas.
• Flood insurance coverage is not required in flood zones B, C & X.
  

Get The Coverage You Need

There are many benefits to living along the Florida Gulf Coast, but the beauty sometimes comes with inherent dangers. Flooding can cause extensive damage to your home and property, and the possibility is one that shouldn’t be ignored.

The professionals at The COTA Group have the expertise you need to determine the proper level of flood insurance coverage for your situation and make sure your home is protected.