Chapter 7:

Am I required to have flood insurance?

As we mentioned before and must stress again, flood insurance is never included in your homeowners policy. Flood insurance is only provided by the National Flood Insurance Program (NFIP), which is a non-profit carrier brokered by all insurance agents. No, you are not required to carry a flood policy unless you have a mortgage that requires it and you are in a Special Flood Hazard Area. Your insurance agent can assist you in determining if you are in a flood zone with a search specific to your address called a Flood Zone Determination. More than likely, your lender and realtor will know this before you even go looking for insurance.

In light of the seemingly increasing number of storms we see each year all across the country, producing devastating flooding in areas never before affected by flooding, we typically urge all of our clients to be aware of the benefits of having a flood insurance policy. 90% percent of all natural disasters in the U.S. involve flooding and almost 25% of all flooding occurs in moderate to low risk areas. There is a 30-day waiting period for all flood policies, with the exception of a new home purchase where the lender requires flood coverage. You do not want to try and wait until there is a forecasted storm to quickly buy a flood policy because you simply will not be able to.

Many homeowners hesitate to purchase flood insurance because they feel flooding is not as likely if they are not in a high-risk flood zone and some also believe that they will be eligible for disaster assistance should their home flood. Unfortunately, they are wrong on both counts. Federal Disaster Assistance requires a Presidential declaration in order for most any type of assistance to become available. The government has many parameters around disaster declarations and not all flood incidents are declared a disaster. Flood insurance claims are paid whether a disaster is declared or not.

The most common disaster assistance offered comes in the form of a loan that must be repaid with interest, with terms that can extend as long as a home loan, up to 30 years. These loans are provided through the Small Business Administration (SBA) and require an application and documentation typical to any loan. Flood insurance reimburses you for all covered losses up to the limits of your policy for your dwelling (ranging from $100,000-$250,000) and contents (up to $100,000). There is never any re-payment for a flood insurance claim.

For homeowners who are not in a high-risk flood zone, which are considered preferred risk policies, the premium is typically an average of as little as $130 to $365 annually. An SBA disaster loan can easily have a repayment amount of this amount every month, for the entire life of the loan!

Many people do not buy flood insurance for a number of reasons and suffer a huge financial loss when their homes are severely damaged or even completely destroyed by flooding. You see it happen every year somewhere in our country. We strongly urge all our clients to be on the safe side and carry flood insurance. It is very little to pay for a lot of peace of mind and it could save you from a financial disaster as well.

F.A.Q - Questions And Answers about Florida Insurance


The privacy of our website visitor’s and our client's is very important to our company. We will respect your privacy and we will not share your information with advertining or marketing companies, and will not sell your information to any mailing lists. We only share your personal information with the companies and the individuals that are necessary in performing our business duties in acquiring and in servicing your insurance needs. Please feel free to contact us immediately if you have any questions about your privacy.


Information contained within this site is the property of Hoffman and Associates Insurance Company and is provided for consumers looking to purchase insurance. Any other use is prohibited. We are not responsible for errors and omissions on this web site. All information contained herein should be deemed reliable but not guaranteed, all representations are approximate, and individual verification is required. Please contact Hoffman Insurance Company at 321-751-2511 before making any purchase decisions based on information contained on this web site to check for validity. This content is copyrighted by Hoffman and Associates Insurance Company and will bring legal action on to anyone who copies the information contained here. PLEASE NOTE THAT COMPLETION OF A REQUEST FOR INFORMATION DOES NOT CONSTITUTE THE PURCHASE OF INSURANCE. NO COVERAGE MAY BE ADDED, CHANGED OR BOUND AS A RESULT OF SUBMITTING A REQUEST FOR INFORMATION. ALL COVERAGE MUST BE CONFIRMED BY THE AGENCY IN WRITING SUBJECT TO AN ACCEPTABLE SIG NED APPLICATION MEETING THE UNDERWRITING GUIDELINES OF THE INSURANCE COMPANY. Please read your policy carefully for your terms of coverage. No information in this website alters the terms of coverage in your individual policy. If you do not agree to these terms please exit this website