Yup.  You read that right. You’re probably pondering what circumstance requires flood insurance. Great question!  The answer: getting a home loan.  More specifically though during the lending process you will be getting home owners insurance and they will let you know if flood insurance is required on that particular property. If you already own a home it is probably a wise idea to check with your insurance agent to see if you have coverage.  While it's not required at this point you may want to consider it.  You don't want to wait until a large storm to call or you may not get approved as there is a 30-day waiting period.  Better late than never.  

Where can floods happen in Colorado? They can happen in more places than you would think.  Some new developments have later had serious issues with drainage and flooding due to storms.  Floods can happen in high, medium and low risk flood zones. In fact; about 25% of all flood insurance claims come from outside high-risk areas. 

The colorado.gov website “floods can happen anywhere, anytime. Often, they accompany natural disasters such as storms, early snowmelts or rising rivers, but not always. 

The Federal Emergency Management Agency (FEMA) offers Flood Insurance Rate Maps (FIRMs) at www.floodsmart.gov. These maps help determine the amount of flood risk and if flood insurance is required. You can view the maps to determine if your property is in a flood-prone area. You can also enter your address to get an estimated flood risk profile.”

While house hunting you can enter your address on the FIRMs website and determine if that house is going to require the additional flood insurance.  

The average cost of flood insurance according to the colorado.gov website is “about $1 a day, on average, depending on location and the type of coverage chosen. Typically, there is a 30-day waiting period after applying and paying the first premium for the insurance to become effective. Coverage choices include insuring just the structure of a home or also including its contents.”

** Your home can not be in a flood zone at time of purchase and later be clasified as one if there were any flood claims in that area during ownership.  This includes if a home down the street ended up having street flooding due to a storm, your home will most likely be place in a  low-risk flood zone.  This could affect the resale value of your home.  

If you have questions or concerns regarding your home or future purchase please reach out to krystal@westandmainhomes.com



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