Spring has recently sprung but in many areas of the country they wouldn’t know it other than the date on the calendar. Unseasonably cold weather still remains in much of the upper Midwest and Northeast while storms and flooding have hit the south.

This isn’t as much a weather report but a reminder to property owners to make sure they’re covered for weather hazards. Insurance coverage for real estate is not only a good idea but individual policies must meet minimum coverage for things such as fire, hail or other hazard. However, there are some exclusions and depending upon where the property is located additional coverage may not only be suggested but required.

For coastal areas where hurricanes are a possibility property owners can expect to pay an additional premium for wind. And along with that wind and storm is rain. And if there is too much rain, flooding will likely occur. But many don’t realize that flood insurance is a completely separate rider that again depending upon the location can add quite a bit to a property owner’s annual insurance premium.

When a buyer applies for financing the bank orders a Flood Certificate. This certificate will show the property lines of the unit and whether or not the property is in a flood zone. Flood zones are determined by the Federal Emergency Management Agency, or FEMA and if the structure is shown to be within a flood zone, flood insurance will be required. It’s not an option, it’s a requirement if the buyer wants to obtain financing to proceed with the purchase. Even if properties are not located in a flood zone and a wave of water rushes through the home during an epic storm, the property owner may not be covered depending upon the type of policy. The point is there needs to be a specific rider in the policy that lays out when water damage occurs.