Purchasing a home with a mortgage requires that you obtain homeowner’s insurance. Living in a coastal area such as Charlotte County, flood insurance is also typically required.

When your insurance advisor determines your homeowner’s insurance rate, he or she will also check to see if your home requires flood coverage. This is determined by checking the FEMA flood zone maps, which indicate where every property in the United States is located in proximity to possible flood waters. For those living in coastal counties, flood insurance is recommended for everyone – it will be very affordable if you are not in an official flood zone.

Pro Tip: Ask about a flood policy at the onset of the mortgage process, as the lender can then include the additional premium into the overall cost analysis.

FEMA maps have been used as a resource for all types of industry for nearly 100 years, but in the last few decades the maps were entirely redrawn. The government subsidized much of the flood policies in the country, yet floods are a major source of insurance claims. In this country alone, flood damage costs more than $8 billion dollars annually – and it was determined that many of these floods were not in designated high risk areas. In order to better represent the risk and the costs involved, maps were reimagined to incorporate most coastal and river area homes into flood zones to ensure proper coverage.

The following information was sourced from the official FEMA website.

  • FEMA flood maps are officially called Flood Insurance Rate Maps. They outline a series of flood zones, indicating areas of high risk, moderate risk or low risk for flooding.
  • Communities and municipalities utilize these flood maps to establish minimum building requirements for coastal areas and floodplains.
  • Lenders use the maps to establish flood insurance requirements for those seeking a new mortgage.
    Special Flood Hazard Zones
  • High risk flood zones are indicated on the maps with the letters ‘A’ or ‘V.’ These zones are determined to have a minimum 1 in 4 chance of flooding during a 30-year mortgage.
  • All home owners with federally regulated or insured mortgages (the majority of all conventional or FHA loans) are required to buy flood insurance if their property falls in one of these areas.

Non-Special Flood Hazard Areas are thought to present a moderate-to-low risk of flooding, which means that although your risk is lower, you could still suffer a flood.  These zones are known as   ‘B’, ‘C’ or ‘X’ , and do not mandate flood insurance coverage in order to obtain a mortgage. However, experts suggest purchasing a policy.as these areas represent 30% of the recipients of federal flood assistance – and file 20% of the annual claims.

It is important to point out that flood insurance is required not only for a flood caused by rising water, but other water-incidents such as a sewer backup. Some residents have been shocked to learn that the water damage in their home was not covered after a hurricane because they did not have flood insurance – even though the water was driven in by the storm.

Where to Purchase Flood Insurance

The National Flood Insurance Program (NFIP) is administered by FEMA and they issue or underwrite the majority of flood policies. A flood insurance policy typically does not become active for 30 days from the date of purchase.

If you are purchasing a home in the Port Charlotte area – or are simply looking into getting a flood insurance quote –  the FEMA flood maps will be used to assess the risk involved. Even if the home is located miles from a major body of water, you may be considered high-risk if you are close to a river or similar waterway.

If you have questions about obtaining a policy for your home, or to learn more about what is or is not covered – call Ezzi Insurance Advisors.