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Some "HEADS UP" for Hurricane Season on the purchase of that new home!

May 30th, 2012 4:26 PM by Sherry Bitner

If you are planning on purchasing a home in the near future, you need to do some extra planning when purchasing a home that needs Flood Insurance. 

You see, the National Flood Insurance Program is up for approval in Congress.  And, we all know what that means!  They are only approving the program for a 60 day extension and plan to debate a more substantial bill in June to overhaul the entire program.  Some issues up for debate are whether or not to cover second homes or vacation homes, and other topics such as how much the premiums will increase.  Oh what?

So, for the present time, you will be required to fill out an application for flood insurance, pay the premium, and wait for the approval of the insurance from the government (which can take up to 30 days) prior, yes you heard me, PRIOR to closing!  You had better plan to have a closing date of at least 60 days built into the sales contract if you are buying a home in a flood zone.  If it takes less time, you can always close sooner.  But if the government gets backed up with applications...well, you don't want to loose the house before you even buy it, do you?  It is always better to be safe, than sorry. 

If the property you are purchasing is not in a flood zone, you do not need to purchase flood insurance as a requirement to close your loan.  BUT...and this is a big may want to consider purchasing it anyway.  Ask your insurance agent why you may need this...and he will tell you what your homeowners insurance doesn't cover.  You can also go to if you are considering purchasing flood insurance. 

Moving is a perfect time to prepare for a really is!  As you unpack, inventory your home, room by room.  Take photos or videos to support any claims in the future.  Scan your documents and photos and keep them on your flash drive in a safe deposit box and send a copy to a family member or friend who lives in another part of the country. 

Then, in the future, when you purchase something new, add a scanned copy of the invoice and photo to your documents and you will be updated in case of a disaster.  You have to unpack anyway, so add a pen and pad of paper (and the camera) to the "open first box" when you move!

Informing you of how to protect your dreams once they come true is our life long endeavor! 

Let's get started making those dreams come true!

Sherry Bitner



Posted in:General
Posted by Sherry Bitner on May 30th, 2012 4:26 PM