STEP 5 - PROTECT YOURSELF WITH FLOOD INSURANCE
Life On The Coast - Can You Get Flood Insurance?
If you live on the coast, or plan on it someday. Read this first. Not all areas are insurable for flooding. In fact, certain areas on the coast, according to FEMA, are on land likely to be washed away in the next 60 years! Should you live in a place like that? Can you get insurance in a place like that?
FEMA and Flood Assistance
The Federal Emergency Management Agency (FEMA) handles flood assistance as the channel of the federal government. It is currently working with thousands of local communities to enforce stricter zoning and building measures to prevent major flood related catastrophes. FEMA also offers federally subsidized flooding insurance through other carriers.
Some Areas That Are Typically Uninsurable
However, FEMA is not that crazy about life on the coast-and neither are many insurance companies. Homes on the coast of ocean waters are often times not eligible for flood insurance. Such troubled areas include parts of North Carolina, the Florida panhandle, and areas of Delaware and South Carolina.
87,000 Homes Will Be Washed Away Over The Next 6 Decades??
A study released by FEMA in the year 2000 reported that some 87,000 homes and buildings are built on land that is likely to be washed away over the next 60 years. Should FEMA be ashamed that they don't provide insurance for those people who need it? Or is it a reasonable conclusion that people who purposely live in dangerous areas known for hurricane disasters are just not worth the risk?
So - How Do You Get Your Coastal Property Insured For Flooding?
There's no one true answer here, except that if you choose to live on the coast you will have a difficult time finding flood insurance. That is not to say that no company is willing to insure a condominium, commercial business or house near the beach.
But expect to pay big for the joy of living in a fun, sunny and higher risk area. A few private companies are willing to extend flood coverage for homes on the coast for about $3000 a year. Considering that a home on the coast can be insured for up to $200,000 it seems more than reasonable.
It pays to be insured. At this point we should all be thankful we don't live on the coast. (Though we do try and vacation there as much as possible.) If you live in a typical American city then depending on where you live and if it's in a low to moderate risk flood zone, you could purchase insurance for as low as $100.00 a month. For a $200,000 insurance policy that's a good deal and the opposite of living dangerously.