Is Flood Insurance Required?

Many homeowners and renters have questions about whether flood insurance is required for a home they have purchased or a house or apartment they may be renting.  In the Temecula, CA area home buyers or renters can refer their questions to a qualified professional at Friant Insurance Agency.  

Buyers of homes and businesses located in designated high-risk flood areas with a mortgage provided by a government agency will be required to purchase and maintain flood insurance.  Also, if you live in a high-risk area and have had to receive federal disaster assistance like grants from the Federal Emergency Management Agency (FEMA) you will have to continue flood insurance.  The same applies to qualify for disaster loans from the US Small business Administration (SBA).  The maintenance of flood insurance will allow you to receive aid at a future date if you need it.  Federal disaster assistance comes either in the form of a loan which is paid back with interest, or a FEMA disaster grant usually in the amount of $5,000. 

Coverage is not required if you do not own or rent property outside the high-risk area, however, your mortgage company may still require a flood insurance policy.  Another important point to consider:

  • Traditional home and renters’ policies do not usually cover flood damage.
  • Flood insurance will pay claims even if there is no Presidential Disaster Declaration.

The decision whether to purchase flood insurance in addition to your home or renters’ insurance policy is an important discussion to have with an agent at Friant Insurance Group if you live in the Temecula, CA area.  You can visit their website before your visit to gather information on flood coverage and think of any specific questions their friendly professional agents can answer.