While homeowners don’t usually think about flood insurance as a necessary part of their insurance plan, this type of policy can be incredibly important for those in high-risk areas. Flood insurance is designed to cover damage to property, directly related to a flood event.
O’Donnell Agency LLC offers flood insurance for New Jersey residents, but we understand that you may have questions about how this type of policy works, so let’s look at some of the details.
This is an important question and usually depends on your situation. Flood insurance is not required to be a homeowner in NJ. However, there are areas called SFHAs or “Special Flood Hazard Areas.” These are places that the federal government has designated as flood plains where floods do occur and can cause a lot of damage when they do (they may shift over time but tend to include coastal areas and river environments).
If your property is in an SFHA or near one, then most lenders will require you to have flood insurance as part of your home insurance when getting a home loan of any kind.
The only way to be sure is to check your current homeowners or property insurance policy and see if there is a rider for flood insurance. However, it’s important to note that homeowner's insurance doesn’t automatically include flood insurance unless it’s specifically chosen. If you get homeowners insurance through your lender, this may have happened, but you can easily tell by looking at your policy.
For more information on flood insurance and if you need it, contact O’Donnell Agency LLC in the Cranford, NJ area: We will be happy to answer all your questions and find the right plans for your situation!