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Live in Texas and wonder if you should buy flood insurance? Well think about this statistic and you are bound to have your answer. Texas is near the top of the chart when it comes to damage created by weather-related activities. The greatest portion of the damage is directly attributable to floods. And if you are still not sure whether you require flood insurance, you may not have any choice in the matter if your home is mortgaged. Depending on the amount of a mortgage, especially in instances where the bank or mortgage company owns the majority dollar value of the home, it may require flood insurance as a condition of the loan. Further, if the home is in an area with a propensity to flood either known by historical data or environmental changes to the area, the bank will indeed require insurance. Many areas are designated as floodplains or flood zones. The NFIP and FEMA keep maps which indicate areas where flooding is probable. Banks and mortgage companies will review these maps to determine whether your home is located in or near the area and will make a decision. Disagreeing with their decision will hardly help you, as you will walk away with no loan. For people who have existing loans and receive a notice to purchase flood insurance, it will be difficult, if not impossible to fight. As long as the bank carries the mortgage, it will make the decisions under which you will keep that mortgage. Further, if the maps showing flood plains have changed and your property is now affected, their decision may be well founded and indeed prudent. In addition, if you live in an area that has previously flooded and you subsequently apply and receive assistance, then flood insurance is mandatory for as long as you live in the same home. If you choose not to buy flood insurance after having been helped, then you will never be able to receive assistance again. This actually applies to all states and not just Texas. And if you are not forced or required to buy flood insurance as a condition of your mortgage or previous assistance status, then the questions remains "should you buy insurance of your own free will?" We have compiled a few facts to help you make that decision.
1 Comment
11/4/2017 11:51:07 pm
There is definately a great deal to know about this subject. I like all of the points you've made.
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