When You Should Have Flood Insurance On Your Property

Your home is a very valuable asset that you need to make sure is properly covered by insurance. One type of insurance that you may need to have on your home is flood insurance. There are several situations in which you may need to have flood insurance on your home to ensure your Canby, OR area property is properly protected and covered by insurance.

Required by Mortgage Lender

Depending on where you live and the type of mortgage that you have, flood insurance could be a requirement of your mortgage lender. FEMA manages an active flood zone map that designates which areas of the country are at higher levels of risk for flood. If your home is located in a higher-risk flood zone, your mortgage lender may require that you carry flood insurance on top of your home insurance policy.

If you have a loan that is provided by FHA, you will likely have to escrow these payments each month. Your lender will also continue to monitor the FEMA map. This means your flood insurance needs and costs could change over time.

When You are at Risk

Most people that have flood insurance policies on their homes are required to do so by the mortgage lender. However, even if you are not required to do so, you should still consider the flood risk. If you live in an area that is prone to flooding or is located near a body of water, you may want to have flood insurance in place. It is important to understand whether a flood is covered by your base insurance policy and whether the risk in your area makes it worth investing in flood insurance.

If you own a property in the Canby, OR area and would like to learn more about flood insurance, you should meet with the team at Oliver Insurance. The Oliver Insurance agency will help you better understand your flood insurance requirements and needs to ensure your home is properly protected.