Understanding Flood Insurance in Florida: What Homeowners Need to Know

As residents of the Sunshine State, Florida homeowners may often enjoy beautiful weather. However, forecasts can quickly take turns for the worse, particularly during the Atlantic hurricane season. As tropical storms build in the Atlantic Ocean and Gulf of Mexico, they can break land with devastating force, potentially wreaking havoc on entire communities. Given how Florida’s location and low elevation make it quite susceptible to heavy rains and flooding, responsible homeowners must take appropriate precautions, including retaining the right insurance.

What Is Flood Insurance?

Flood insurance is a specialized type of property coverage that may be crucial for homeowners, businesses and renters alike. As its name suggests, this insurance product can provide coverage for floods, including those arising from heavy rains, broken dams and levees, and overflowing bodies of water. Policies are often purchased through the Federal Emergency Management Agency (FEMA) and its National Flood Insurance Program, although private insurers may also offer coverage.

What Does Flood Insurance Cover?

Flood insurance can provide a multifaceted financial safety net across various assets and property, potentially shielding you from costly losses. Policies may be customized to suit your needs, and they often include the following components:

• Building coverage can offset repair or rebuild costs arising from floods, including those involving your home’s foundations, walls, roof, floors and attached fixtures.

• Contents coverage may limit out-of-pocket damages related to your possessions, including electronics, furniture, clothing and small appliances.

Why Is Flood Insurance Important?

Floods are not typically included in standard homeowners insurance policies. As such, you must augment your coverage portfolio with this additional financial protection. Should you neglect to secure the right flood insurance, you would likely need to pay out of pocket for any repair, rebuild, or replacement costs, which could incur significant costs.

Additionally, some homeowners may be required to carry flood insurance. For example, if you’ve purchased your home with the assistance of a federally backed mortgage and live in an area at high risk of floods, you are required to retain coverage as long as your loan remains outstanding. Homeowners who have received FEMA aid in response to floods may also be required to have flood insurance or else be ineligible for future assistance.

How Much Does Flood Insurance Cost?

Your flood insurance rates may be influenced by several factors, such as the following:

• Structural specifications (e.g., number of floors, building materials used and age)

• Location

• Lot details (e.g., topography and elevation)

• Property value

• Past insurance claims

• Coverage limits

• Deductibles

Learn More About Flood Insurance

At Iron Rock Insurance, we aim to provide a sturdy and reliable presence for homeowners in the Apollo Beach area. Our knowledgeable and dedicated agents are standing by to help you secure the right flood insurance. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.