Can I be forced to buy flood insurance?
When many people are buying a home, they may want to be close to the ocean, a lake, or on a bay. Though these areas are generally really nice and are highly coveted places to live, the homes also may have a tendency to flood because of their proximity to the water. There are certain situations in which a property owner may actually be forced to purchase flood insurance to protect them in the event of property damage due to flooding.
The Federal Emergency Management Agency, or FEMA, is permitted to create requirements for certain flood-prone homes stating that they need to have flood insurance. There are a number of insurance lenders who are federally-regulated and overseen by FEMA. This flood insurance would allow FEMA to provide financial disaster assistance in the event of a flood that damages the property. The National Flood Insurance Act ensures that certain areas have flood insurance available to homeowners.
Many people don’t realize how hard it is to obtain flood insurance in some place, which makes this act and these enforcements very beneficial depending on where you live. The thing to keep in mind is that insurance companies are always looking to make money. They’re not going to want to insure you if you live in an area prone to flooding. In the event of a disaster, they may also try to tell you your damage is worth less than it truly is. If you believe your insurance company is trying to take advantage of you, consult with an experienced insurance law attorney who can provide you with assistance.
The Law Office of Craig A. Blumberg is an experienced New York City insurance law firm. If you require quality assistance after having suffered property loss, please contact our firm to schedule a free initial consultation.