![]() ![]() Protecting your investmentĮven if you don't have a mortgage that requires you to carry flood insurance, it might be wise to protect yourself from the devastating financial losses of a flood.Īccording to the NFIP, flooding causes an average of $5 billion in damage nationally each year. Flood insurance can provide a crucial form of coverage that standard homeowner's policies don't include. That insurance protects the lender from losing their collateral to a disaster. After all, the property is the collateral for the loan. ![]() According to the New York Times, these federally-backed loans represent about 70% of all mortgages.Įven if your mortgage is not federally-backed, your mortgage lender may require you to carry flood insurance. If you have a mortgage backed by the federal government, the terms of that loan may require you to have flood insurance if you live in an area that is considered a high flood risk. If you have a mortgage in a high flood risk area, there's a good chance you'll be required to have a flood insurance policy. Even if they don't, a flood policy may protect your property if a flood damages your home and belongings. Your mortgage lender may require flood insurance.
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