I am widowed; I had flood insurance because the bank made me buy it. I have paid off my loan. Do I still need flood insurance?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 16, 2021

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If you no longer have a loan on your home, you are not required to continue the flood insurance. However, you should consider keeping the insurance if you’re in an area that’s at a high risk for flooding. Rather than canceling the policy you may consider a higher deductible, a reduced amount of insurance or both. If you reduce the insurance below 80% the estimated replacement cost of the home, or the maximum insurance of $250,000, you will receive a lower amount of settlement in the event of a flood loss. Your insurance agent can explain this to you and offer you quotes for changes to the policy.

If you decide not to continue your flood insurance, wait until the renewal date to drop the coverage. Unless your home is sold, there is no refund from the flood program for canceling the policy. Since the premium has already been paid for the year, you might as well keep the protection until the renewal date.

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