FLOODS OF INTEREST
Homeowners with mortgages from federally regulated lenders need flood insurance if their properties rest within a flood hazard area. In these regions, there is a 25 percent chance of a flood occurring during a 30-year mortgage timeframe. However, even if a home is owned outright or a mortgaged home does not reside within a flood hazard, there are plenty of good reasons to purchase flood insurance, which is not part of standard homeowners insurance policies. People who live in low- or moderate-risk areas file more than one-fifth of all claims through the National Flood Insurance Program, as well as receive about one-third of federal flooding disaster assistance. Changes in weather patterns place nearly everyone at some degree of risk.
NOTE: There is typically a 30-day waiting period before a flood insurance policy takes effect with exceptions.