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Facts about Orlando Flood Insurance

Why need Orlando Flood Insurance?

 

Flooding is the #1 disaster in the U.S. and Florida is no exception.  Orlando/Central Florida is prone to flooding due to the proximity to water ways and heavy rains from hurricanes and tropical storms.

 

Here are some misconceptions about Orlando Flood Insurance

 

Flood Insurance is expensive:

 

Orlando flood insurance typically is not expensive because Central Florida is located in the middle of the state and not along coastal regions.

 

Flood Insurance is covered under a regular homeowners policy:

 

Not exactly. A Homeowners insurance policy covers flooding due to broken pipe,but not for rising water due to rain or overflowing waterways.

 

The property is safe from flooding if in low risk area:

 

Flooding can happen even if the property is in a low to moderate risk zone.  FEMA changes the flood zones periodically as topography changes. About 20% of claims come from low risk areas.

 

How do I know if a home requires flood insurance?

 

Many buyers ask if the home they are considering requires flood insurance.  Orlando Flood insurance is required if you are getting a federally regulated loan and the property is located in a designated flood zone.

 

There are some things you can do as a home buyer to find out if a property is in a high risk zone, and determined if you may be required to get Orlando Flood Insurance.  You can find out by asking seller or reviewing the sellers disclosure.  Your buyers agent will have access to Flood Zones,  or you can type in the property address on FEMA website.  Generally, X, B, C are in low risk flood zones. Orlando Flood insurance is a common add on to the insurance policy.

 

Ultimately, your lender will do a flood zone search, if they determine if Orlando flood insurance is required you will need to get a flood elevation certificate which will be done by the property surveyor along with your home survey.

 

Obtaining Orlando Flood Insurance

 

Your insurance agent can provide you an Orlando Flood Insurance quote based on preliminary flood zones, but will need the elevation certificate for a finalized quote.

 

If the property is not determined to be in a high risk zone, you can get Preferred rates, in this instance or if you pay cash for the property then Orlando flood insurance will be optional.

 

Flood insurance has maximum building coverage of $250,000.   You can get coverage in excess of this amount, but I understand its very expensive.

 

Florida flood insurance has gone through some  historical changes.

 

Flood insurance is a government program through National Flood Insurance Program (NFIP) which is administered by FEMA.  NFIP has had problematic funding, and is currently subsidized to keep rates low.  However, there are initiatives to make changes to this program in the coming years.

 

Buyers Broker of Florida specializes in helping home buyers find the best home. These experienced Buyer Brokers will make sure you understand all the details associated with your home purchase, including Orlando Flood Insurance.  Be a smart home buyer and call us 407-539-1053.