I Live In A Low-Risk Flood Zone. Why Do I Need Flood Insurance?

A flood zone is an area of land identified and described by the Federal Emergency Management Agency (FEMA) regarding its risk of flooding for insurance purposes and floodplain management. League City, TX residents all live in an area with some risk of flooding—it’s just a matter of whether you are living in a low, moderate, or high-risk area.    

I Reside In A Low-Risk Flood Zone. Why Do I Still Need Flood Insurance?

While flood insurance coverage isn’t federally mandated for everyone, anyone can be at financial risk for flooding. In fact, over one-fifth of all the FEMA National Flood Insurance Program (NFIP) flood insurance claims originate from policyholders living outside of mapped high-risk flood zones, and have received 33 percent of federal disaster assistance for flooding. A Preferred Risk Policy from ACU Insurance Services will provide insurance coverage for your building and contents if you are located in a moderate- to a low-risk area.

My Community Has Never Flooded, So Why Do I Need Flood Insurance?   

Flooding doesn’t just occur in high-risk areas. It also can occur in moderate- to low-risk areas as well. Buildings on a hill can be damaged by mudslides, and properties with poor drainage systems, broken mains, and a rapid accumulation of rain or snowmelt can all experience flooding. If you live in a high-risk zone, there is a one-in-four chance you’ll experience flooding during a 30-year mortgage, so a flood insurance policy is required by law for any building located in a high-risk flood area before securing a mortgage loan from a federally insured or regulated lender.

My Lender Is Demanding Flood Insurance, But I Don’t Live In A High-Risk Area  

If your League City, TX property is located in a moderate- to a low-risk area rather than a high-risk area, federal law doesn’t require you to carry flood insurance, but your lender may still require it. If the flood maps are revised and you now are located in a high-risk zone during the life of your loan, your lender will notify you that you must purchase a flood insurance policy. Talk to your ACU Insurance Services agent today for information about how flood insurance can protect your home and property.