Flood insurance worth the added expense

We own a unit in a small condominium. Until recently, we have had flood insurance, although we are not in a flood zone. Now a new owner is pushing for it, and the board is caving in. Are they legally required to have flood insurance if most owners do not want to pay the extra expense through our dues?

Flood insurance is one of the most important investments for any homeowner to make in insuring their continued ability to keep the home. Due to the way the insurance industry is structured, other types of insurance, such as the standard hazard policy every homeowner should have, specifically exclude what flood insurance covers. Flood insurance is often government subsidized, making it very affordable. It is a mistake for any property owner who lives in or near a flood zone to not have this coverage.

The law requires your condo’s leadership to use its best effort to fully insure itself, the condo’s common areas and property for its full insurable value. Some boards will try to evade this relatively small expense by pointing out that the law does not specify what types of insurance must be maintained or that they are not in a flood zone. However, recent instances of rising water have shown us that flood insurance indeed is necessary. Other boards content themselves that concerned owners will insure their own units, but that coverage will not help when the common areas are damaged or destroyed.

It is important for every board to try to keep the bud- get reasonable and save their neighbors from unnecessary expense. But this is not the place to cut corners.