If you’re seeking to buy a house, you may be required to have various types of insurance. Sometimes, flood insurance is required. Knowing when and how to get flood insurance is essential.
At Magic City Insurance Group LLC, servicing Birmingham, AL, we offer a range of insurance services to guide our customers to the right type of insurance policy.
What Is Flood Insurance?
Flood insurance insures structures and their contents in the event of a flood. It is a separate policy from home insurance, as most home insurance policies don’t cover floods. The National Flood Insurance Program (NFIP) provides flood insurance.
Is Flood Insurance Required to Buy A House?
Flood insurance is demanded if you secure a mortgage in a high-risk area. Your mortgage lender will inform you if you need to get flood insurance. This is a federal requirement, and your mortgage lender may require you to get flood insurance even if you’re not in a high-risk area.
In addition, flood insurance is essential if you live in a high-risk area, have received disaster assistance, and desire continued eligibility for disaster assistance in the future.
Who Needs Flood Insurance?
Almost everyone can benefit from flood insurance, even if it’s not mandated. Flood insurance protects you from financial liability if a covered event occurs.
To learn more about acquiring flood insurance for your home, contact Magic City Insurance Group LLC, servicing Birmingham, AL. Call us today.
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