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Exploring the Options for Condominium Flood Insurance
Floodwaters do not discriminate; those living in condos are at risk in the same way as those living in detached homes. In order to protect your home from water damage, residents and homeowner’s associations or condominium corporations should have condominium flood insurance in place. There are two kinds of flood coverage for condominiums:
Who Is Responsible
for Each Type of Coverage?
If the development has been backed by the Federal Housing Administration (F.H.A.) and is located in a flood zone, the Homeowner’s Association (HOA) is entirely responsible for insurance coverage of the buildings and common areas. They must provide proof of insurance before financing and other legalities can be approved. The HOA is also responsible for flood insurance in cases where the condo residents are strictly tenants. The building owners must obtain insurance to cover the structure and building components.
In all cases, every resident of each condo unit is responsible for his or her own content coverage. They need to obtain an individual insurance policy that will be based on the value of the items they wish to insure.
How Important is Location?
For those living in high risk areas, the standard rate will apply, and obtaining the condominium flood insurance coverage may not be an option for them. Lenders generally insist on this type of coverage, especially those that are federally regulated. Most building and contents insurance coverage offered in areas of high risk is sold separately.
How Are Condominium
Flood Insurance Rates Calculated?
What Is the Best Way
to Obtain Condo Flood Insurance?
Condominium flood insurance is essential for those in high risk areas, and an important consideration for all residents, regardless of location. Statistics indicate that 25 percent of flooding occurs in areas considered from low to moderate risk levels. Hence, give yourself some peace of mind by protecting your home and possessions against water damage by acquiring condo flood insurance.
Learn how important sump pump drainage is to the protection of your home.