We've heard the old Southern expression when someone asks if you're going to an upcoming gathering and one may reply, "Yes, God willing and the creek don't rise." Translation: "I'll be there if nothing happens to me and the creek doesn't flood its banks to the point I can't drive across."
Even if you don't have to cross a river or creek, the water CAN RISE and that's exactly what happened in Louisiana in August in areas that haven't flooded in over 500 years! YES, 500 YEARS!
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Louisiana 500 Year Flood, Aug 2016[/caption]
My grandmother lives in South LA and said, "In my entire lifetime I've never seen water come down THAT fast, THAT hard and rise THAT quickly."
I know people that lost everything - homes, cars, belongings or even their livelihood. What's worse is that most did NOT have flood insurance. After all, why would you pay for flood insurance if you don't live in a flood zone?!
Let me tell you why you cannot afford to pass on flood insurance regardless of the flood hazard zone.
WHAT'S THE DEFINITION OF A FLOOD? In the world of insurance, a flood is considered rising water from something that originates OUTSIDE your house.
Homeowner's insurance does NOT cover rising flood waters, regardless of where you live. You can live in Florida near the Gulf, or in the heartlands of America smack dab in the middle of Kansas - doesn't matter - if you don't have flood insurance, you have NO coverage for rising water from outside the home.
What IS covered pertaining to water on your regular homeowner's policy? Karen Kirkland of Kirkland Insurance Agency explains, "Interior water damage is defined as an accidental discharge or overflow of water or steam from within a water system excluding sewers and drains. An example would be a dishwasher or washing machine hose disconnecting or a water heater or air conditioner overflowing. All of these are from systems within a house."
I live near the bay with access to the Gulf meaning I'm in a
Special Flood Hazard Area (Zone AE) so yes, I have flood insurance and any mortgage company is going to require it when a home loan is involved. The annual cost is based on the elevation and my home's foundation is high enough that my annual premium is $550. Some pay a lot more and some pay less.
Often times I see buyers choose not to obtain flood insurance because they're in a non-hazard area (Zone X), but you can still be vulnerable - ask any of the flood victims in LA or even FL residents located inland that flooded from
Hurricane Hermine recently. NO flood insurance = NO coverage from rising water. Premiums for non-hazard areas are EXTREMELY affordable.
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Hurricane Hermine, Sept 2016[/caption]
Depending on your elevation, for a few hundred dollars a year you can have the peace of mind that if the rains do come down and the 'creek rises,' at least your home and personal property are covered.* CALL your insurance agent, find out what zone you're in, your elevation, and your potential cost to protect your biggest investment - YOUR HOME!
Follow more blog posts here or on my website at BeachtoBays.com.
For more info visit www.floodsmart.gov
*Verify rates with your insurance agent.