Flood insurance is legally available for all property owners in the United States based on federal law. Of course, there is a very little obligation to have flood insurance, and some condominium owners go without it. What are some of the details of flood insurance, and is it a staple in the United States?
Flood Insurance Zones
There is a map of certain areas, usually along the coast of the United States, that have to have flood insurance coverage. It is a very select group of areas. There are other areas where flood and wind insurance is highly recommended, but not necessarily required by law.
A select few must carry it by law because they are required by the mortgage broker. The mortgage broker has their own set of standards and zones. They will traditionally follow what is outlined at the federal level. A condominium owner that is opening up a mortgage will be required to carry flood and the wind.
Individual Unit Coverage
Condominium Insurance is peculiar because it does not necessarily involve the building itself. The owner of the entire building will likely need coverage for the hallways and the building. The specific individual who lives in the condo must cover the space inside the walls of their unit. So if the condo building owner has insurance, it will not cover the contents and the unit of everyone in the building.
It is an odd set-up that certainly brings up a few discrepancies throughout the years. If the building does collapse, the real issues begin to surface. It can be an incredibly frustrating affair. Many condominium owners have been tossed to the wind because they did not have proper coverage. The condo owner can hypothetically rebuild the building and do it in the exact same way as before. Only now, the unit that was once owned is now the property of the condo owner. That is because the insurance was not set-up correctly.
Condominium Insurance is tricky because it overlaps in certain areas. Condominium owners will always need to have their own respective unit coverage. Visit us website for more on coverage.