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How To Know If Flood Insurance is Required

You’ve likely heard of flood insurance, but might be unsure whether it is needed. Floods are the most commonly occurring natural disaster in the United States with only a few inches of water needed to cause extensive damage to your home and belongings. Flooding can be caused by a myriad of conditions including heavy rains, hurricanes, spring thaws, and the rapid accumulation of rain post wildfire. If your home is in a FEMA designated high-risk flood area and you have a mortgage on the property, then your lender is legally regulated to require that you carry flood insurance. 

Generally speaking, your homeowner’s insurance will not cover flood damage so you’ll need to purchase a separate policy. Flood insurance is issued via the National Flood Insurance Program and managed by FEMA or can be purchased via a private insurer. Moderate to low risk flood areas are designated via the letters B, C, and X on FEMA flood maps while high-risk flood areas begin with the letters A or V. 

Given that the risk of floods can change rapidly, FEMA works on an ongoing basis with communities around the United States to identify, map, and update flood risk. At Armadillo Insurance Agency in Austin, TX, we’ll work diligently to help identify if flood insurance is required in your area. Additionally, even if flood insurance is not federally mandated, we’ll help outline the pros and cons of having the coverage so you can make an informed decision. Give us a call today to learn more and schedule an appointment with an insurance professional.