When it comes to flood insurance, many people ask, "who should get it?" The answer isn’t always cut and dry and depends on several factors. Here are a few things to consider from us at Heydari Financial Group.
For starters, the Federal Emergency Management Agency (FEMA) recommends that anyone living in an area with a high risk of flooding get flood insurance if available. This includes areas near bodies of water like rivers, oceans, and lakes and areas prone to flash floods during heavy rainstorms like Houston, TX. It’s also important to note that this recommendation applies even if your property is not located in an official FEMA-designated floodplain or has never flooded before—flooding can occur anywhere, so having coverage helps protect against potential losses due to all types of flooding.
In addition, homeowners who have taken out a mortgage loan from the federal government or specific private lenders are generally required to carry flood insurance if their property is in an area with a high risk of flooding. Even if your property is not in a high-risk flood zone, you may still be required to purchase coverage if the loan was federally backed or obtained from specific private lenders.
Finally, it’s important to remember that standard homeowner’s insurance policies do not typically cover losses due to flooding. Purchasing separate flood insurance is necessary if you want financial protection against potential damage and loss due to a flood.
Ultimately, everyone should assess their risk factors when deciding whether or not they need flood insurance. If you have any additional questions, call us at Heydari Financial Group today. We proudly serve the Woodland and Houston, TX area.