[JourneyOfLife]

I read some of the other threads on property insurance in central Florida. I have some questions about water damage, including flood insurance. Hopefully some of you can share some insight.


1) What sort of water damage coverage do you have on your home owners policy?

2) Do you anticipate that home insurance in central Florida will continue to rise (more than the national average)?

3) Do people in central Florida typically need/buy flood insurance?

4) Some may have flood insurance, what is the cost in central Florida? Are the premiums going to go through the roof?

[rubicon]

Originally Posted by JourneyOfLife

I read some of the other threads on property insurance in central Florida. I have some questions about water damage, including flood insurance. Hopefully some of you can share some insight.


1) What sort of water damage coverage do you have on your home owners policy?

2) Do you anticipate that home insurance in central Florida will continue to rise (more than the national average)?

3) Do people in central Florida typically need/buy flood insurance?

4) Some may have flood insurance, what is the cost in central Florida? Are the premiums going to go through the roof?

Water damage claims that are directly covered result from plumbing problems or leaky roofs

Water damage from flood are not covered by HO and you will need to look at a Fed program

[Bizdoc]

You need to look at your specific HO policy. Generally, water damage from leaking pikes, failed roof, etc are covered. Damage from floods is not.

Saying that the cost of HO insurance is rising faster than the national average doesn't capture all of the variables. Home prices in many parts of FL are rising faster than the national average, for example, making premiums go up to keep pace. A number of national insurance companies decided that FL was not a market they wished to be in and stopped doing business in the state (and thus allowing other companies to increase premiums at a faster rate in a less competitive market). And so on. Insurance is a bet that the company makes with you. If they think that they will lose, they will change the odds/cost. Generally speaking, they have to do all or none of a state...

Flood insurance is a special case among HO insurance. It is written by the federal govt because no insurance company wants to take on the risk. Because it is *only* flood insurance, it has to sustain itself from premiums. If you have several years of claims (and remember, it is *all floods* everywhere in the country), then premiums have to go up to keep it solvent.

Do you need it? Depends on how you feel about risk (and how your mortgage company feels about it.) You can go to Sumtergis.com and look at the latest 100 year flood plain calculations to see where you house sits. You may or may not think that hedging against an event which is likely (in other words has odds of happening) once in 100 years is significant.

Also keep in mind that we are a long way from the coast. Most flooding associated with hurricanes happens as a storm surge. If the storm surge makes it all the way to The Villages, the storm would be of truly biblical proportions and you'd be much too busy with other things to care about a little flooding.

Tornadoes are probably much more likely to be an issue here. You are welcome to worry about them, but then again, not many people move away from Oklahoma City, Memphis, or Kansas to escape them.

[indianavette]

I have the same question as we are moving in March. Do most people pay the additional price for flood insurance or just skip it. It costs about $400/year.

[batman911]

If you are not located in a flood zone you should generally not need flood insurance. Look at the area around your home. Is it possible to flood your lot or is there sufficient drainage to handle a large volume of run off water.

[TNLAKEPANDA]

I have been handling flood claims for the past 20 yrs... a flood can occur anywhere even if you are not in a flood zone. As far as I know TV is not in a flood zone however given enough rain some areas could flood. Another example of having your house flood would be if someone hit a fire hydrant in front of your house. The odds are slim but it could happen and your house could flood. Your HO insurance would not cover the damage. They would cover damage from a broken pipe inside your house.

We just purchased a home in TV and I am not buying flood insurance. If you need the comfort of having flood insurance I would suggest that you do not buy the max of $250K but rather a modest amount of about $50K which would probably cover most all of the damage but it would not be replacement cost coverage. If you have any specific questions you can PM me.

[mindabu]

What about sinkhole insurance?