Flood Insurance for Condominium Associations and Townhouse Homeowner Associations
Flood Insurance for condominium associations and townhouse homeowner associations pays for damage to your buildings due to flooding. Personal property (contents) is normally not covered by HOA flood insurance master policies.
Unit owners may not be aware that there is a creek in the area, but FEMA (also known as the Federal Emergency Management Agency) may have studied local waterways and determined that there is a chance of flooding. The flood will occur after heavy rain causes the local creek to rise which then backs up into local curb and parking lot drains. The rising water will then cause flooding in your condominium or townhouse community. These low-risk flood planes are typically designated as AO flood zones. In areas where rivers exist or in communities where the predominant elevation is below sea level, the risk of flooding is much greater.
In AO and higher-risk areas, mortgage lenders demand that homeowners obtain flood insurance. A flood insurance policy covering an HOA including all of the units and buildings in the homeowner association is typically lower cost per unit compared to each unit owner purchasing their own individual flood insurance policy. Some insurance companies brand the FEMA flood insurance policy with their company name, but it is actually the FEMA flood insurance policy that underwrites the coverage.
FEMA flood insurance underwriting guidelines have many technical nuances. Using a highly trained agent who has taken multiple Flood Training Classes and who will acquire available Discounts on your behalf can help you save thousands on your flood insurance coverage.