Soaring home prices and the need for excess flood insurance

Everyone is at risk of flooding, but as an agent, it’s important to understand how much risk your clients’ homes could potentially face. As you probably know, consumers can find out if a property is at low, medium, or high risk on the Federal Emergency Management Agency (FEMA) site. So where do they fall on the Flood Zone Map and what kind of flood insurance coverage do they need for their home and belongings?

The map is divided into zones that are used to help determine policy rates. Although federal loans do not require flood insurance outside of FEMA’s designated Special Flood Hazard Areas (A & V zones), it is recommended that agents consider offering flood coverage to all property owners. According to the Texas Floodplain Management Association, approximately

25% of all flood damages occur in low-risk zones, commonly described as being “outside the mapped flood zone.”


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