The Risk of Flooding – Why Get Flood Insurance

Even if you don’t own a home along the ocean or river, you can still be at a risk for flooding.

You may be surprised to learn that:

Your Homeowners Insurance doesn’t cover flood.

  • Historically about one-in-four flood claims occur in low- to moderate-risk areas.
  • Floods and flash floods happen in all 50 states.
  • Just a single inch of water can cause costly damage to your property

·         Dangerous or damaging floods don’t always mean dramatic, rushing waters through the streets of your hometown.

  • Hurricanes, winter storms and snow melt are common (but often overlooked) causes of flooding.
  • New land development can increase flood risk, especially if the construction changes
    natural runoff paths.

·         More and more buildings, roads and parking lots are being built where forests and meadows used to be, which decreases the land’s natural ability to absorb water. Coupled with changing weather patterns, this construction has made recent floods more severe and increased everyone’s chance of being flooded.

And if you decide to rely on Federal disaster assistance – consider this:

  • Federal disaster assistance is usually a loan that must be paid back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month ($2,880 a year) for 30 years. Compare that to a $100,000 flood insurance premium, which is about $500 a year ($33 a month).
    Even then, those loans are only available if the President formally declares a disaster … and less than 10 percent of all weather emergencies in the United States are declared.

Flood insurance premiums are generally lower than expected

  • If you live in a low to moderate risk area and are eligible for the Preferred Risk Policy, your flood insurance premium may be as low as $112 a year, including coverage for your property’s contents.

Remember – there’s a 30 day wait before a flood insurance policy takes effect.

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