Answer:
Because you live so close to the water, it may be a good idea to buy flood insurance, especially if you live in an area that's prone to coastal flooding (e.g., southern Florida). And don't assume that you're safe from flooding just because you live on the third floor of your condo building. If a severe flood wipes out the ground floor of your building, all of the other units in the building (including your own) may become uninhabitable as well.
Unfortunately, your condo owners insurance doesn't protect you against flood damage. Although the flood insurance carried by your condo association provides some protection for the building, the common areas, and your condo unit itself, these master flood policies generally don't cover the personal property in your condo unit (e.g., furniture, jewelry, clothing).
To get the complete coverage you need, you'll have to purchase flood insurance. This type of insurance protects your personal property against flood damage and may also supplement the building/unit coverage provided by your condo association's policy. To buy flood insurance, you must live in a community that takes part in the National Flood Insurance Program (NFIP); most high-risk communities have joined this program. The NFIP offers flood insurance through private insurance companies and agents, though the policy you buy is backed by the federal government. You can locate a company that sells flood insurance in your area by contacting the NFIP at (800) 621-3362.
IMPORTANT DISCLOSURES
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable--we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Copyright 2016 by Broadridge Investor Communication Solutions Inc.
All Rights Reserved.