With Chicago’s wettest year on record, you might begin to wonder if your condo building is adequately covered by flood insurance.
In 2012, the Federal Emergency Management Agency (FEMA) decided to get more serious about enforcing flood insurance guidelines. Basically, if your building is in an area that is likely to flood, it will be required to pay for flood insurance. If your area has never before experienced flooding, flood insurance is suggested but not required. For the curious, you can look up your area’s flood history and rating online.
For condo buildings, the vast majority of the time your association will handle the flood insurance for the whole building (it will actually be a part of the master insurance policy). This policy will cover the exterior and structural components of the buildings, but not anything inside the walls of your condo.
If your condo is on the second floor or higher, you’re probably safe from flooding, but if you are on the first floor, you may want to consider adding a flood component to your personal homeowner’s insurance. It should not raise your premium significantly unless you are in an area where flooding occurs frequently.
Lastly, as an involved owner, it might not be a bad idea to check up on your association and make sure it has caught up to the 2012 guidelines (some of which are still coming into effect) and that the master policy has the appropriate amount of flooding insurance for your zoning.