Here’s what you need to know about flood insurance in our area.
Are you relocating or buying a resort property in the St. Germain area? If so, you should know that flood insurance is extremely important here. I’m sharing the basic know-how about flood insurance so you can make the best decision for your situation.
Let’s start by talking about the different levels of flood zones. The first one is the low-risk zones. They are exactly as the name suggests. They haven't been flooded in at least 100 or 500 years, and you aren’t required to purchase flood insurance if you’re financing.
Next is the most common flood zone you’ll see in our area, which is the AE zone. These areas have flooded in the last 100 years and have a specific height designation. They require flood insurance for financing, but it isn’t expensive if your first-floor living area is above the flood level. Typically, these policies range from $500 to $900.
If you don’t need financing, you won’t need insurance either, although we highly recommend it. When you buy a property with flood insurance, it’s possible to transfer the previous owner's policy to you.
"Only bona fide floods are covered by most policies."
Sometimes you’ll see a B flood zone, and these are flood zones caused by shallow ponds. You may need flood insurance for these areas, but it won’t be expensive.
Finally, there are V flood zones. These are when you’re in the direct path of the storm surge. You’ll definitely need insurance here if you’re financing, and you’d be crazy to skip out on it even if you’re paying in cash. The insurance can get pricier here, but it’s worth it for peace of mind. These typically cost thousands of dollars per year.
Most flood insurance policies pay $250,000 for damages, but they don’t cover things below the floodplain. Also, only bona fide floods are covered. If your sewer backs up but it wasn’t caused by a flood, it will be covered by homeowners insurance, not flood insurance.
