BUYERS' CORNER

Think You Don’t Need Flood Insurance?

If you’re buying a home in an area described as a “flood plain,” your lender will require that you purchase flood insurance. However, just because a lender doesn’t require such insurance, doesn’t mean your home can’t flood. In recent years more than one part of the country has been hit by what the experts refer to as, “500 year floods,” areas that haven’t flooded for centuries. In 2009 the southeast experienced such floods that destroyed or damaged hundreds of homes, many of whose owners were unaware of any potential for flooding. Not only does the flood destroy the home and possessions, those without flood insurance may be financially ruined.

Traditional homeowners’ insurance does not cover flood damage; and even though a home may lie outside the “flood hazard area,” homeowners should check with local authorities to determine the relative danger to their property. If there is any doubt, it’s well worth the nominal fee to consult an engineer. Then, if the possibility of flooding exists, buy flood coverage. The cost is minimal when measured against the loss of a home.