Re: Good and bad information on wind damage deductibles...
Posted by
alligatorob on 10/12/2016, 4:39 pm
Everyone is at some risk of a flood, its just a matter of what risk.
To get a mortgage you need flood insurance if you have a 1% annual chance of flooding. Its a big country and just based on statistics you can figure a lot of people outside of this 1% zone will get flooded. The 1% rule is to protect the banks,so that not too many homes with their mortgages flood every year. It is not to protect the homeowner.
If you cannot absorb the loss due to flood you should consider buying flood insurance no matter what flood zone you are in. Its cheaper for people outside of the 1% risk zone, but still costs something.
Another way FEMA looks at it is if you have a 1 in 4 risk of flooding during the time it takes you to payoff a 30 year mortgage you have to buy flood insurance. If your risk of flooding is only 1 in 5 you are not required to, but for a lot of people it still makes sense, you just don't have anyone forcing you to buy it. |
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