It is not a good time… to be without Flood Insurance

August 03, 2011

Floods are the main natural disaster in Puerto Rico and the United States.  It has been raining a lot these past few months, and although a few days ago we had a sun break, we have to remember that we are in the middle of the hurricane season.  Only a couple inches of rain can cause thousands of dollars in damages. Did you know that the risk of flood is covered on a separate insurance policy specifically designed for these purposes.  The National Flood Insurance Program, administered by the Federal Government is responsible for it.

When you are about to purchase or refinance a home, the financial institution will verify whether your property is on a flood high risk area. If that is the case, the entity will request that you obtain a flood policy to protect your property structure.   However, even if you are not in a high risk area, you may need to be protected.  As a matter of fact, FEMA statistics published on state that 25% of all flood insurance claims come from moderate or low risk areas.  Also, there is a 26% chance of experiencing a flood during the life of a 30 year mortgage, compared to 9% of experiencing a fire.

Flood coverage may be obtain to cover only your property structure (walls, doors, windows, etc.) or your personal belongings too.  If flood coverage is obtained at the time of a mortgage transaction, it is effective immediately, however, if it is not acquired within a mortgage transaction a 30 day waiting period is required for the policy to be effective.  Flood coverage is also available for commercial properties.  If you are not yet protected against flood risk, contact Popular Insurance to receive more information.  You may also visit to learn how to better prepare for a flood event.