Flood Insurance
 

I closed on my home in Pinellas two days ago. It was "strongly" suggested I ad hurricane and flood insurance to my policy. I'm wondering how many here get these two additional coverage's?

I think most homeowners policies here have a hurricane rider. Flood insurance is typically separate. It is subsidized by the Federal government but it is not cheap.

Your location is new and was previously agricultural so no reliable flood history has been developed. Do you live near a body of water? Before you buy flood insurance, be sure to understand what it does/does not cover. For example, if street drains clog and water rises into your home, would that be covered? Or, would coverage only be for overflow of a body of water? These are important distinctions. Get answers to these questions in writing.

Enjoy your new home!

Federal flood insurance is $450/hr purchased through you local insurance agent. Starts one month after purchase.

I hope you mean $450 per year.

More importantly than being by natural water, are you in a low area.

Have an agent explain for accurate information.

You may wish to have a conversation with your insurance agent. Basically, flood insurance provides coverage for rising water but there are some conditions that must be met. It is priced according to the flood plain you are in. The entire US is in a "flood plain" - they are rated by the probability of realizing a flood within a certain period of time. They are labeled by letters and numbers. Some flood plains (X and A, if I recall correctly) will require flood insurance if you have a mortgage. For a majority of The Villages, I don't believe it is "necessary" as the probability of realizing rising water that results in a claim is probably pretty small - and insurance is all about probabilities. If it helps you sleep better then get flood insurance. Keep in mind that The Villages has an effective water management system of catch basins and retention ponds plus the sandy soil tends to drain well.

I don't know what "hurricane insurance" is. Typically, your home owner's insurance will cover you for any storm related damage except for rising water (you need flood insurance for that).

Thanks everyone your opinions on flood insurance.

We just added a flood endorsement to our policy that ASI now offers. It's less than $300 a year.

After seeing the devastation in Texas I'd think it's a no brainer. However, with a named storm in the Atlantic you may not be able to get flood insurance now. I can't remember how that works.

Trying to use Houston as a proxy for what might happen in The Villages is a questionable strategy. Regardless, whatever lets you sleep at night is what you should do. There is a 30 day waiting period.

Being in the flood claims business for 27 years I can tell you that any house can flood even if not in a flood plain. The definition per the policy for a General Condition of Flooding is two or more acres of normally dry land or two or more adjacent properties (which could include your neighbor or the street. If there is a general condition of flooding in the area and your drains back up into your house the policy may cover that. In the Villages the potential of flooding would most likely be from streets, ponds and street sewer drains getting clogged. If we got enough rain for a storm you could easily flood. If you are on the high side of the road you will be a lot better off and the water will flow towards the ponds most likely. Your home must be insured 80% to value for RC coverage or insured for the max of $250k otherwise they will depreciate and give you ACV. Contents (personal property) is separate coverage (and cost) and is always adjusted at ACV.

Hope this helps.

"Hurricane" coverage in a Homeowner's or Fire policy is defined as Wind. Wind is usually a covered peril in all residential policies.

The difference in Florida (and coastal states) is that there may be a separation of deductibles for Wind. You have "normal" wind, you have Named Storm wind and then there is Hurricane wind. "Normal" wind is usually part of your AOP (all other perils) deductible, and is frequently a dollar amount. Named Storm and/or Hurricane deductibles are frequently a percentage of your property coverage (dwelling), i.e. 1%, 2%, 5%, even 10%.

A "normal" wind could be a tornado or a "no name" storm. A "no name" storm can sometimes do as much damage as a Named Storm.

The definitions of storms, duration before and after, and so forth, are spelled out in your policy as well as the deductibles. They are generally in an easy to read format.

If you live in The Villages and any type of wind is excluded from your policy, you need a new agent/broker.

Flood insurance is required by lenders for homes labeled as being in an "A" or "V" zone. "V" is generally coastal or on a waterway. I have seen some properties in TV that, when under construction, (which is before a flood mapping can be done), have advised that they may end up being designated in a flood zone required to carry flood insurance by lenders. These properties were backing up to retention ponds. I don't know how these properties were finally mapped.

A good percentage of floods occur annually in zones that are not "A" or "V".

I would go for a high deductible hurricane policy.
Flood depends on elevation of the land around your home. You could live their for a while and then make up your mind.

Has anyone experienced a flood insurance claim in TV?

Anyplace that gets 50+ inches of rain in a 4-5 day period will have homes that flood. Last year it was West Virginia and this year it was Texas. I hope it never happens here but will not take a chance. I think $450 for flood insurance is a wise investment.

The probability of 50+ inches of rain in 4-5 days is pretty remote. If it lets you sleep better at night then it makes sense for you. Make sure you read the small print on your flood insurance policy to see under what conditions you would actually be able to collect.

Some food for thought. While I am normally a believer in assuming more risk by deductibles and being rewarded with lower premiums, compared to the homeowner's and fire (property) insurance rates in coastal counties, the rates in The Villages are quite low. The credit given for the highest wind/hurricane deductible may be negligible. Before you go taking the highest available wind deductible, especially if it is a percentage of your dwelling value, you should check and compare what the lowest available deductible would be. Keep in mind that the wind/hurricane deductible credit would be a credit against the "wind only portion" of the premium. In many policies, the "wind only" premium is broken out of the total somewhere in the policy.