We speak to customers who think they do not live in a flood zone because the mortgage company does not require flood insurance. In Florida, everyone lives in a flood zone and on average 25% of flood claims are paid in the preferred zones B, C and X. We recommend everyone have flood insurance because Florida is flat and is subject to torrential rains caused by Low Pressure Systems, Tropical Depressions, Tropical Storms and Hurricanes.
Your homeowners policy has many exclusions and two of the biggest exclusions are Flood and Earthquake. A separate flood policy is needed to have flood insurance.
How does flood coverage work?
The flood insurance program is run by the Federal Government as part of the Federal Emergency Management Agency (FEMA). They set the rules and rates and allow private insurance companies to write the flood policy on their behalf. FEMA ultimately pays your claim when they reimburse your insurance carrier for your claim. FEMA offers maximum limits of $250,000 Dwelling and $100,000 Contents for residential policies. Higher limits are available through the private marketplace which is called Excess Flood.
Some of the factors that will determine how much you will pay for Flood Insurance are:
- The year your home was built
- Your flood zone
- The elevation of your home
- The deductible you choose
- Does your home have flood venting?
We enjoy working with our customers and advising them on the best way to use all the available information to purchase flood coverage at the most competitive price with the correct coverage.