Nashville Flood Lessons: Do You Need Flood Insurance? My Money Blog

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Nashville Flood Lessons: Do You Need Flood Insurance?

After reading about the recent flooding in the Nashville area, I again find myself reminding people to consider optional flood insurance. First, some background. Most homes that are in 100-year flood plains are required to buy flood insurance. This is because the banks know that this designation means that you have a 26% chance of a 100-year level flood within a 30 year span .

However, even if you are outside these areas, you may still be in danger of a serious flood. Often these areas are shown on flood maps as 500-year flood plains. Many people read this and think something like last flood was in 1909, were good for another 400 years! Actually, having a 0.2% chance of a flood each and every year works out to a 6% chance of occurring at least once over a span of 30 years, or 1-in-17. According to an article... http://insurance-a.ucoz.com/news/need_flood_insurance/2013-06-13-3163