With the spring season having sprung, discussions of flooding always seem to spring up. A recent study highlighted by the National Association of Realtors addresses a misnomer that occurs regularly in our society. It points out that consumers often overestimate the amount of flood coverage that they have. The article indicates that a few inches of water in a 1,000 square-foot home can easily cost $10,000 in repairs, so it is very important to understand if you really have the coverage you need. The author of the article, Melissa Dittman Tracy, notes that it is critical for consumers to thoroughly explore their options and really understand the protections that are included or excluded with a standard renter’s or home insurance policy. When storms are on their way, it may be too late to get coverage due to waiting periods.
Take the time to contact your insurance provider today and ask exactly what coverage you have, and what coverage you do not have. Do not wait until a storm is on its way. If you are considering a purchase of a home, be sure to read the fine print of what a potential policy could offer. Also, be aware what insurance requirements your lender may have. Nobody wants to learn after a catastrophic event that they have inadequate insurance coverage.
Staying on the topic of flood insurance, the National Flood Insurance Program (NFIP) is set to expire on September 30th, 2017 according to the National Association of Realtors. The last time it expired, an estimated 1,300 home sales were disrupted every single day as a result (that’s 40,000 sales each month). Without the NFIP being renewed, new flood policies cannot be renewed or purchased, creating a potential serious problem for many homeowners. As a real estate professional, this situation could certainly be a dire one; however, I am optimistic that a solution will be found as the broader economy could be seriously affected if it is not renewed. However, if not, the real estate market in Deland and greater West Volusia and all of Eustis, Mount Dora and the rest of East Lake County will surely be affected.