Flood Insurance Information
Flood insurance is both simple and very confusing. Here I go with some info about it. Flood insurance is never covered on any home insurance policy, and must always be purchased separately. Flood is managed by FEMA and NFIP, which is part of the Federal Government. For properties located on Preferred Flood Zone X, the coverage max limit is $250,000 on Dwelling and $100,000 on Personal Property, the deductible is set at $1,250, and the premium is set at $499. Unlike most other forms of insurance, flood is not possible to shop around. All premiums and coverage amounts are the same regardless of which representative you purchase it from. There's a 30 day waiting period from the date of purchase and must be paid in full.
Most floods you see in the news happen in Flood Zone X, because it has lessor infrastructure than the Severe Flood Zones. When you see a severe flood zone that actually floods, it's because the infrastructure has failed, case in point, Hurricane Katrina and the city of New Orleans. The reason that city flooded was because the levy broke. Well, in preferred flood zones, there are no levies to hold back days of rain after the ground is saturated and the drainage systems and rivers are full.
In other words, most floods happen in preferred flood zones and most homeowners don't have flood coverage. That's all the confusing stuff about flood insurance. The simple thing about flood is that all you have to do is purchase it to know that your property and asset is properly protected. Don't be misinformed by your mortgage provider that you are not in a flood zone just because they don't require that you have an active policy.