Why need Flood insurance in Orlando?
Flood insurance. The #1 disaster in the United States is flooding and Florida is no exception. Central Florida is in close proximity to waterways and yes, there are a lot of lakes. Heavy rains from Hurricanes and tropical storms are common in Central Florida.
Getting Orlando Flood Insurance when you buy a home is also a common “add on” and something that many home buyers do buy.
Common misconceptions about Orlando Flood Insurance
Misconception #1: Flood insurance is expensive.
Not so. Central Florida is located in the middle of the state and not along the coastal regions of the oceans. If you lived along the beaches in Florida, than flood insurance would be expensive.
Misconception #2: The Home owners insurance policy will cover flooding.
Not exactly. A homeowners insurance policy does cover flooding, but only if it’s due to broken pipes or leaks. The insurance will not cover rising water due to overflowing water ways or rain.
Misconception #3: If the home is in a low risk area it is safe from flooding.
The reality is that flooding can happen even if the property is in a low risk zone. 20% of all insurance flooding claims come from “low risk” areas.
Which home requires flood insurance?
Flood insurance is required if the property is located in a designated flood zone, determined by FEMA. If a property is located in a flood zone does not automatically mean that the property will flood. If the property is located in a low risk zone, that does not mean it will not flood.
This is a very common question. Some home buyers even ask to view homes that are not in a flood zone. That part is pretty much impossible. Flood zones do change, therefor a property that is not in a flood zone today, may be rezoned “flood zone” tomorrow.
There is no way to predict. I have two home on a lake…one is in a flood zone and the other is not.
Obtaining Flood Insurance
A home insurance agent will be able to give you a preliminary cost quote. In order to get a final insurance quote, you will need an elevation certificate, which can be obtained from the surveyor.
If you are getting a federally regulated loan and are in a flood zone, it is mandatory that you have flood insurance. However, if you are paying cash, then it is up to your own discretion, to purchase flood insurance or not. Typically it cost a few hundred dollars annually.
The bottom line for flood insurance
Flood zones are prevalent in Florida, and just part of purchasing in this wonderful state. It should never be a deal breaker.
Buyers Broker of Florida helps home buyers find the best home at the most favorable terms. We look forward to speaking with you 407-539-1053