Thursday, March 22, 2012

Answers > Do I Have to Buy Flood Insurance if I Own My Home Outright?

Do I Have to Buy Flood Insurance if I Own My Home Outright?

by Florida Office of Insurance on March 1, 2012

I've owned my home outright for eight years. Can I be forced to buy flood insurance? What will "they" do if I refuse to buy flood insurance?

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{ 6 comments… read them below or add one }

pearlmar February 14, 2011 at 2:51 pm

No.

StephenWeinstein February 14, 2011 at 3:42 pm

No. There is no “they”. If you have a mortgage or home equity loan, and the home is in a location where flood insurance is required, then the lender requires you to have flood insurance. If you do not owe any money on the home, then there is no lender and no requirement to have flood insurance.

You should buy it anyway, but it is not required and “they” will not do anything to you if you refuse.

NoraCat February 14, 2011 at 4:08 pm

Once you own your home free and clear, I don’t think you’re required to carry flood insurance.

But it’s a really good idea to have it if you live in a flood-prone area or in a “flood plain”. Insurance claims due to flood are 30 times higher than fire, so flood damage is more common than many people think, and regular insurance doesn’t cover flood damage.

acermill February 14, 2011 at 4:49 pm

If you have no outstanding mortgage(s) on your property, you don’t have to buy ANY insurance to cover the premises, if you so choose. Of course, if a fire burns the place to ashes, you get nothing. The same applies to a major flood. You get nothing there either.

mbrcatz February 14, 2011 at 5:10 pm

Nope. There is no “they” that makes you carry any kind of insurance on your home, if it’s paid for.

Of course, if you don’t HAVE the flood insurance, and you have a water damage claim, you’re uninsured. Your call.

wg0z February 14, 2011 at 5:42 pm

who’s trying to force you to buy it? your homeowner’s insurance carrier? they cant force you.
but note that you are probably NOT covered for flood damage if you dont pay for it.

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