Florida Insurance Blog

Flood Insurance and Your Mortgage: What Homebuyers Need to Know

Purchasing a home is a significant milestone in life; for many, it’s a substantial investment in Tampa, FL. When considering buying a property, especially in areas prone to flooding, understanding flood insurance and its relationship with your mortgage is crucial.

Flood Insurance: An Overview

Flood insurance is a specialized policy that covers damage to your property and belongings caused by flooding. It’s important to note that standard homeowners’ insurance policies typically do not cover flood damage, making separate flood insurance necessary. 

Flood Zones and Lender Requirements

The Federal Emergency Management Agency (FEMA) maps these zones to assess the risk of flooding in different areas. Lenders typically require flood insurance for properties in high-risk flood zones designated as Special Flood Hazard Areas (SFHAs).

Mandatory vs. Voluntary Flood Insurance

If your property is in an SFHA and you have a mortgage from a federally regulated or insured lender, you must carry flood insurance. However, even if your property is not in an SFHA, you may still consider purchasing flood insurance voluntarily, as flooding can occur outside designated high-risk zones.

How Flood Insurance Affects Your Mortgage

Here are the key points to understand:

  • Lender Requirement: If your property is in an SFHA, your lender will require you to obtain flood insurance before finalizing your mortgage.
  • Cost Considerations: The cost of flood insurance varies depending on factors such as the property’s location, the amount of coverage needed, and the insurance provider. 
  • Policy Renewal: Flood insurance policies need to be renewed annually. 
  • Coverage Adequacy: Your lender may require coverage up to the property’s replacement cost or the outstanding mortgage balance.

Morgan Insurance Services can Help You with Flood Insurance.

At Morgan Insurance Services, we can help answer questions concerning flood insurance. We serve the Tampa, FL area. Contact us today. 

Why Do You Need Flood Insurance?

If you are a homeowner, you need to protect your home against a wide range of potential threats. One of these threats may be flooding. A flood can cause an enormous amount of damage to a home, and it can even destroy it. When you live in Tampa, FL, and need flood insurance, call us at Morgan Insurance Services today to find out more. 

Home Insurance and Flooding

Floods happen for different reasons, and many floods are excluded from coverage on home insurance policies. Even if you have good home insurance, you are still vulnerable in case of flooding. If your home were flooded, and you didn’t have a flood policy, it would be up to you to pay for all the repairs. That’s why you need to get a policy specifically for flooding. 

Why You Need It

Many people know about flood insurance but only choose it if their area is a high-risk flood zone. These zones are usually near water that has a tendency toward flooding. It may also be because the slope of the land leads to floods. Most people don’t know that about 20% of insurance claims for floods come from areas that are not in these high-risk zones. For this reason, the National Flood Insurance Program suggests everyone should have this insurance. This program backs flood insurance and sets a single price for the coverage that is the same for everyone. 

Cover Yourself Against Floods

No matter where you live, you could be a victim of flooding. You must have a flood insurance policy to protect yourself and your home. To get one, call Morgan Insurance Services in Tampa, FL to find out more and get started.

Top Reasons For Buying Flood Insurance

Do you think that you do not need flood insurance? You may not live close to water or have a great home insurance policy. However, the truth is that every property is at risk of flooding, even if it is not located in a flood-prone area. If you still think it is not necessary, here is a list of reasons why getting flood insurance is a smart decision:

Reasons To Purchase Flood Insurance

Every homeowner should carry this type of insurance, and here is why:

  • Floods happen everywhere. According to the statistics, almost 20% of all flood insurance claims are made by homeowners who do not live in flood-prone zones. That means that regardless of your location, there is no guarantee that your property will not be damaged by flood. 
  • Home insurance does not cover flooding. Many homeowners mistakenly believe that flood coverage is included in a standard home insurance policy. However, it is not true. Therefore, even if you have a really good home insurance policy, damages caused by flooding will not be covered by your insurance, and you will have to pay for them out of your pocket. 
  • Flood losses are high. Most people do not even know, but even a few inches of water can lead to very costly losses. For example, if your home is 2,000 square feet, two inches of water will cost you about $27,000. If you do not have flood insurance, you will have to cover this damage yourself. 

Morgan Insurance Services Serving Tampa, FL – Let Us Protect Your Home

If you live in Tampa, FL or any other surrounding area, having flood insurance is a must. Floods are very common in Florida. If you have questions about this type of insurance, or you need help in getting a policy that will fit your needs, Morgan Insurance Services is ready to assist you. Feel free to visit our website for more information or give us a call. 

Ensuring You are Properly Covered Against Flood Damage

Many people believe that homeowner or renter’s insurance covers flood damage, but this is usually not true. So, it is imperative to ensure you have flood insurance, especially if you live in more subject areas to get floods. And even though some people can get this separate policy from a program administered by the Federal Emergency Management Agency (FEMA) called the National Flood Insurance Program (NFIP), it is still critical to consult a reliable insurance agent.

There are still certain important details you should know to ensure you are properly covered against flood damage. For instance, flood insurance doesn’t cover floods resulting from internal damage in the home, like broken pipes. Another example includes the fact that flood insurance does not cover personal possessions in the basement where a flood erupted except for food freezers and a washer and dryer. Also, flood insurance policies may pay for structural damage in the basement, like drywall and electrical work. Another important fact to consider is that the insurers’ legal definition of flooding, which is usually flooding of at least two acres or more than one property, is affected. 


These are just a few discrepancies when it comes to flood insurance. For more information about flood insurance and make sure you are properly covered, contact Morgan Insurance Services in Tampa, FL, today. They are highly trained, licensed, and experienced insurance agents that will lead you in the right way with flooding insurance and other types of insurance to ensure adequate coverage. So, don’t be caught off guard. Contact Morgan Insurance Services in Tampa, FL now. They are more than happy to assist you. 

What’s Covered by Flood Insurance?

Living in Florida puts your home at risk of damage from wildfires, hurricanes, tropical storms, floods, and other disasters. Home insurance protects you from many of these perils except for flooding. By purchasing a separate flood policy, you can add flood protection to your insurance package. A standard flood policy from Morgan Insurance Services in Tampa, FL can provide the following protection for you and your family.

Building Coverage

Flood insurance offers both building and contents coverage to protect your valuable investments against flooding. You can purchase just building insurance, just contents insurance or both.

Building insurance protects your home structure to include foundation, walls, staircase, wall-to-wall carpeting, and electrical, plumbing and heating systems. Built-in appliances, cabinetry, and paneling are also covered, giving you that much more protection against flood disasters. It only takes a few inches of water to devastate a home. By purchasing flood insurance, you can take preventative measures to safeguard one of the most expensive investments you may ever own.

Contents Coverage

Contents insurance protects your possessions to include your wardrobe, furniture, electronics, artwork, heirlooms, antiques, and other personal items. It also covers your washer and dryer, portable AC units and small kitchen appliances. If any of these items are damaged or destroyed in a flood disaster, you’ll have financial compensation to replace them without having to dip into your savings to cover your loss. To determine how much coverage to obtain, consider the value of your goods and what it would take to replace them out-of-pocket.

If you live in a flood zone, flood insurance in Florida may be a requirement. As many floods occur outside of flood zones, wise homeowners will take precautions to protect their abode with flood coverage.

For more information about flood insurance and the protection it has to offer, contact Morgan Insurance Services in Tampa, FL.