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Flood Insurance
If you reside in an area prone to flooding, it is highly advisable to consider obtaining flood insurance. This specialized insurance policy protects your property and belongings in a flood. It is essential to remember that typical homeowners’ insurance policies do not cover damage resulting from floods, making a separate policy mandatory. When evaluating a flood zone, it is imperative to understand the flood risk level of your property and the available coverage options. Some procedures may only protect specific types of water damage, such as damage caused by heavy precipitation, mudflow, or overflowing rivers.
The advantages of Goosehead Insurance and Flood Insurance. As a broker, I have flood options other than your typical Wright or Fema policies and standard governmental programs for homes in flood zones.
I have flood insurance carriers referred to as private flood insurance carriers; just like your standard insurance carriers, this private flood carrier has the financial backing that allows them to rate risk differently.
Now, if you have a home in a flood zone, it may be a scary situation for a buyer. In the eyes of the buyer, we do not want a “let’s go see the next home” attitude, especially if this is a home that the client loves.
Fortunately, being able to shop the private market for flood insurance has changed the game. It is typically priced much better than expected and can help reduce the anticipated closing cost.
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3 Replies
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Thank you Brent Norkus. Great topic. Most of Louisiana require flood insurance. Can you shop for flood insurance or you can only get it from one source which is FEMA. I am getting various different answers.
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Hello Bailey, I wanted to let you know that other flood insurance options are available in Louisiana. However, it’s important to note that the type of loan and the lender involved could impact whether the client can opt for private flood insurance. As of one year ago, I believe that private flood policies are now an option for those obtaining an FHA loan.
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Flood insurance is extremely expensive. Maybe 3000 per year. You also need regular homeowners insurance on top of flood insurance.