If you have a mortgage, you may be required to have certain types of insurance that protect your home. Knowing which types of insurance are required can help you choose the best insurance products for your needs.
At Soto Insurance Agency, serving Covington, LA, we help homeowners who are required to have flood insurance find the right policy. Are you buying a home in a high-risk flood area? Here’s what you need to know.
What Is Flood Insurance?
Flood insurance is a type of insurance that can help you if a flood causes damage to your house. Flood insurance can pay to repair or replace your home or belongings in the event that a flood causes damage to your property.
Without flood insurance, your home may not have coverage when a flood occurs. Most home insurance policies will not cover flood damage.
Who Needs Flood Insurance?
You may benefit from flood insurance if you’re buying a home in a high-risk flood area. You can find out if the home you’re thinking about buying is in a high-risk flood area by checking flood maps.
Are You Required to Get Flood Insurance If You Have a Mortgage?
If you’re borrowing money to buy a home, you may be required to get flood insurance. Your mortgage lender will let you know if you’re required to get flood insurance.
If you are required to get flood insurance before borrowing money, you’ll need to have the flood insurance policy information ready before the loan funds are disbursed. If you don’t have a policy in place, the loan may not be approved.
Want more information about flood insurance? Call Soto Insurance Agency, servicing Covington, LA. We’re here to help.
