You may be required to get insurance when buying a house. The type of insurance you need and whether you’re required to get it depend on various factors.

If you need to get flood insurance, the Allied Brokers Insurance Agency Inc. professionals servicing Palo Alto, CA, can assist you. We offer a range of insurance types, including flood insurance. Here’s what you need to know.

Defining Flood Insurance

Flood insurance is a specific type of insurance that aids recovery after a flood. It’s separate from your home insurance policy, as standard home insurance policies do not cover flood-related damages. Flood insurance is provided through the National Flood Insurance Program (NFIP), which is managed by the Federal Emergency Management Agency (FEMA).

Do Mortgage Lenders require Flood Insurance?

Mortgage lenders may require flood insurance if you buy a home in a high-risk flood area. These high-risk flood areas are designated on flood maps made available online through FEMA.

If your lender requires flood insurance, start shopping for a policy early in the home-buying process. If you can’t find an affordable policy by the time your loan is ready to fund, your lender won’t provide the money to buy the house.

What to Expect When Getting Flood Insurance

Although FEMA provides flood insurance, you can obtain your flood insurance policy from Allied Brokers Insurance Agency Inc., servicing Palo Alto, CA. At Allied Brokers Insurance Agency Inc., we offer excellent customer service and can answer your questions to help you find a policy suitable for your new home. Call us today.