Flood Insurance

[jmitchell]

I called to set in motion our home insurance policy and was told that the flood portion, which we much purchase separately, does not go into effect for 30 days because we are paying cash! If was if we were getting a mortgage then it would be effective immediately because the bank requires it (the protection). :confused:

Has this been your experience?

[Kelsie52]

I was told the bank does not require it --I purchased insurance last week --and it was not an issue --I didnt take it by the way --

[GatorFan]

http://www.fema.gov/business/nfip/

[jmitchell]

I was told the bank does not require it --I purchased insurance last week --and it was not an issue --I didnt take it by the way --


I guess it depends on the bank. It wasn't expensive, only $355.00/year and covers things like sewers overflowing, water lines breaking and flooding into your house, etc. so I thought it was well worth the $355, but what I was concerned about was not being covered during the height of hurricane/rain season in our brand new home.

[Pturner]

So, are you saying that if the bank "required" it, the insurance company would cover you immediately, but if you "require" it they wont?

Does anybody besides me think that's disgusting?

[mulligan]

That's a fed program....your tax dollars at work

[Kelsie52]

I understand --wife and I are still arguing about it --lol -- just read the posting above and it states there is a 30 day waiting period --but it also states banks only require it if you are in a high risk area --I believe we are not --

But dont go by me --I usually dont win thes arguments and we will end up getting the policy for peace of mind

good luck

[bkcunningham1]

I guess it depends on the bank. It wasn't expense, only $355.00/year and covers things like sewers overflowing, water lines breaking and flooding into your house, etc. so I thought it was well worth the $355, but what I was concerned about was not being covered during the height of hurricane/rain season in our brand new home.

According to information in the link provided by GatorFan:


"As with any other type of insurance, it's important to know what your policy does and doesn't cover. For example, damage caused by a sewer backup is only covered by flood insurance if it's a direct result of flooding. The damage is not covered if the backup is caused by some other problem."

Also, regarding the 30 day waiting period:

"30-Day Waiting Period

'There is typically a 30-day waiting period�from date of purchase�before a new flood policy goes into effect. Here are the only exceptions:

'If your lender requires flood insurance in connection with the making, increasing, extending, or renewing of your loan.

'If an additional amount of insurance is required as a result of a map revision.

'If flood insurance is required as a result of a lender determining that a loan that does not have flood insurance coverage should be protected by flood insurance.

'If an additional amount of insurance is being obtained in connection with the renewal of a policy.' "





http://www.floodsmart.gov/floodsmart/pages/residential_coverage/understanding_the_basics.jsp

[jmitchell]

So, are you saying that if the bank "required" it, the insurance company would cover you immediately, but if you "require" it they wont?

Does anybody besides me think that's disgusting?


This is FEMA's rule. :rant-rave: I don't see how they can protect the banks and not an individual homeowner. CRAZY! I bought it today and we close on 10/12 so I think we will only will be "uncovered" for 10 days -- at least that was my understanding. It just seems a little :censored:

[dillywho]

I bought flood insurance for the first time this year. We are not in a high risk area, but with all the land clearing for homes, parking lots, etc. it seemed like a good idea. (We live in Summerhill, and there is a sign on 301 that says the road there is subject to be under water.) Better to have it and not need it than to need it and not have it. All of FL is technically subject to flooding (it is a peninsula, you know), but not necessarily prone. There is a mandatory 30-day waiting period before it is in effect which has nothing to do with anything else. That's just the rule. You can't wait until a hurricane is predicted then buy. I bought mine in April so it would be in place long before the "official" hurricane season. Thank goodness, at least so far, their earlier predictions have not been right on target. We did get water up to just below the sliding doors on the lanai in 2004 during the hurricanes. I put down some sandbags just in case then.

TV has planned very well for drainage into the retention ponds, but those could overflow under the right circumstances. This is one of the better arguments for not putting things that don't belong down the storm drains which will stop them up and defeat their purpose.

[jmitchell]

I bought flood insurance for the first time this year. We are not in a high risk area, but with all the land clearing for homes, parking lots, etc. it seemed like a good idea. (We live in Summerhill, and there is a sign on 301 that says the road there is subject to be under water.) Better to have it and not need it than to need it and not have it. All of FL is technically subject to flooding (it is a peninsula, you know), but not necessarily prone. There is a mandatory 30-day waiting period before it is in effect which has nothing to do with anything else. That's just the rule. You can't wait until a hurricane is predicted then buy. I bought mine in April so it would be in place long before the "official" hurricane season. Thank goodness, at least so far, their earlier predictions have not been right on target. We did get water up to just below the sliding doors on the lanai in 2004 during the hurricanes. I put down some sandbags just in case then.

TV has planned very well for drainage into the retention ponds, but those could overflow under the right circumstances. This is one of the better arguments for not putting things that don't belong down the storm drains which will stop them up and defeat their purpose.

Since we are in the process of building our home (closing Oct. 12) the 30 day waiting period would not apply if we were getting a mortgage, but since we are paying cash, we have to wait -- that is my only beef. :sigh:

[The Shadow]

I am with Allstate and sinkhole insurance is extra. TV has had a few sink holes in recent years, no place is safe. I would not be without sinkhole insurance in FL.

[red tail]

Since we are in the process of building our home (closing Oct. 12) the 30 day waiting period would not apply if we were getting a mortgage, but since we are paying cash, we have to wait -- that is my only beef. :sigh:

the criteria for a flood plain designation is more than water over 301!!!one should know what a flood is before insuring against it! flood insurance is expensive and not all encompassing.

[getdul981]

We were in Orlando in Feb., I believe, and one day we had rain that was about 6 inches. There was no flooding. We live in VA (for a little while longer) and if we had had that much rain here, there would have been massive flooding. FL is flat and in VA there are mountains and hills and the water runs off and causes flooding. At least that's how it seems to me.

[Kelsie52]

I am with Allstate and sinkhole insurance is extra. TV has had a few sink holes in recent years, no place is safe. I would not be without sinkhole insurance in FL.

I just bought insurance through TV with ASI --sinkhole coverage is included ...

[Kelsie52]

I would love to know how many people do or dont carry Flood coverage .:shrug:

anyone know where I could find those statistics?:undecided:

[GatorFan]

Sinkhole coverage is an optional coverage added by endorsement per Florida Law to homeowner's policy.

[dillywho]

the criteria for a flood plain designation is more than water over 301!!!one should know what a flood is before insuring against it! flood insurance is expensive and not all encompassing.

Oops, sorry. I meant CR101 not 301. Like I said, I got it because we got some high water in 2004 here in Summerhill and that was before all the building up the hill from us. You're right in that it is not all encompassing, but I feel that what it does makes it worth the cost. Some of the areas, not here but still in FL, experienced flooding a couple of years ago where there had never been any and they were not rated likely to flood so lots of people got caught really holding the bag. Sometimes, I guess we just buy peace of mind and that's all.

[jmitchell]

the criteria for a flood plain designation is more than water over 301!!!one should know what a flood is before insuring against it! flood insurance is expensive and not all encompassing.

It really wasn't that expensive $355./yr and your right -- it covers very specific things -- but we felt it was worth it probably more so since we have never lived in Florida. Sinkhole coverage was part of our regular policy.