Myth: You must live in a flood plain
Not true. If you live in a flood plain, your mortgage company will likely require you to buy flood insurance. But you can purchase it even if you don't live within a flood zone.
"Almost anybody can get flood insurance who wants flood insurance," says Chris Hackett, director of personal lines for the Property Casualty Insurers Association of America. It's cheaper if you don't live inside a flood plain.
The price of insurance through the federal flood insurance program is based on standardized rates and depends on the home's value and whether or not it's in a flood plain, says Don Griffin, vice president of personal lines for the Property Casualty Insurers Association of America.
The average price for flood insurance is about $600 annually, Hackett says.
If you rent your home or live in a condo, you can buy flood insurance for just your possessions, says Griffin.
If you want flood insurance, it pays to think ahead. There is a 30-day waiting period between when you buy the coverage and when it kicks in, he says.