Flood insurance is a policy that is provided by the federal government for people who wish to protect their investments from a flood. In some cases an insurance company will require a policy holder to have flood insurance before they will insure the home. In other cases homeowners are not required to purchase flood insurance. So how does one decide whether or not they need flood insurance?
One way to decide about flood insurance is to find out in what flood zone the house is located. A flood zone A is the worst flood zone in which a home could be located. It means that the home is more likely to have a flood destroy it than a house located in a flood zone X. A flood zone X is the best zone in which a home could be located. This means that it is not as likely that the home will be flooded anytime soon. However, a flood can happen at any time and at any place.
Another way to decide is to find out if your insurance company requires flood insurance on the property. Most homes located in a flood zone A will be required to have a flood insurance policy in force before they will insure the home.
Lastly it comes down to preference. If your home has been flooded in the past then it may be a good thing to carry the policy. However, if the home is located in an area that has never been flooded then you will have to think about the realistic possibility of a flood happening in the future.