Flood insurance isn’t often required except in certain circumstances. But, there are two cases where it’s required and plenty of reasons why you should consider flood insurance even if it’s not required.
Mortgage and High-Risk Requirements
Businesses and homes in high-risk flood areas with government-backed mortgages are required to have flood insurance. For example, if your home was bought with the help of the Federal Housing Administration (FHA), the U.S. Department of Agriculture (USDA), or the Department of Veterans Affairs (VA).
Pennsylvania is prone to flooding. Floods are one of the state’s most common and damaging natural disasters, with 24 counties having an average of one flood event per year. So, it’s likely that your lender will require it.
Private loans may also require flood insurance. If you live in a flood-prone area in Pennsylvania, it’s important to understand your coverage options and factor in the cost of flood insurance when taking out a mortgage.
Emergency Situations
Suppose you live in a high-risk flood area and received federal disaster assistance. In that case, you are required to carry flood insurance. This aid is typically issued for those who did not have flood insurance to support them during the incident and therefore required outside assistance.
You must keep flood insurance to be considered for any future federal disaster aid.
Should You Get Flood Insurance If It’s Not Required?
Floods can happen to anyone anytime, especially in Pennsylvania, where flash floods are common. Since regular home insurance does not cover flood damages, taking on a flood insurance policy is the best way to protect yourself in case of these situations.
Remember that if you receive federal disaster assistance, you’re either receiving a loan, which must be paid back with interest, or a FEMA disaster grant, which is an average of $5,000 per household. With flood insurance, you don’t have to pay it back, and you’ll receive more substantial coverage to repair all the damages to your property.
Flood insurance isn’t just limited to disaster situations either — if your basement floods due to heavy rains, but it’s not deemed a “disaster,” you will not receive federal support. Your flood insurance will.
Insurance is Better with Remco
There are a lot of questions when considering flood insurance, like, do I need it? Is it right for me? Remco Insurance Services doesn’t just provide answers. We provide solutions. To learn more, give us a call today.
