Should I Buy Flood Insurance?

Flood Insurance

The photos above were taken during the once in 25 years storm which hit the Delray Beach area in 2014.

One of the questions we’re asked is should I purchase flood insurance for my villa or first floor condo. We’re not taking a position one way or the other, only you can make that decision. But please read the following, so whatever choice you make, it will be an informed one.

  • Flood damage is not covered by homeowner’s insurance. Only flood insurance covers a property loss in your home caused by rising water.
  • Flood insurance is available only for your home; your car is covered exclusively by auto insurance.
  • Every home is located in a flood zone. Risks are classified as low, medium, or high. Huntington Pointe is in a low risk zone which means  you can buy a relatively inexpensive policy for approximately $350 to $400 annually, depending upon the type of coverage you choose. If you’re not a Florida resident, there is a significant surcharge
  • Nearly 20% of all flood insurance claims come from areas classified as low or medium risk. These claims account for nearly 1/3 of all flood related disaster relief.
  • The most significant damage during a hurricane isn’t from the wind, it comes from flooding.
  • Two inches of water in a 2,000 square foot home can cause $20,000 in damage.
  • You can buy flood insurance from a variety of insurance brokers/companies, but all policies are underwritten by FEMA. If your insurance agent tells you someone other than FEMA is underwriting the policy, run away as fast as you can from that agent.
  • If you decide to purchase flood insurance there’s a mandatory 30 day waiting period before the policy kicks in.