The Importance of Purchasing Flood Insurance

The recent flooding from Hurricane Irene in Connecticut, and floods throughout the country have led many home owners to rethink their need to buy flood insurance, available through the National Flood Insurance Program – NFIP.  Any home with a federally backed or insured lender will be required to purchase flood insurance if they are living in a high-risk area.  Those living in low-to moderate risk areas have the choice.  Ironically, the NFIP reports that a quarter of all flood claims are made by people in low-to-moderate flood The Damage of Floodingzones.  This is because flooding can also be caused by overflowing bodies of water, an inadequate drainage system, a dam or levee breach, or a break in a water main.   Keep in mind for instance, that neither NFIP or a base homeowners insurance policy will typically cover water that backs up through sewers.  These less obvious causes make it prudent to review your insurance policy to make sure you have adequate coverage for your particular situation.