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Scott Jefferson

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Reevaluating Flood Insurance

Posted by Scott Jefferson

Jan 8, 2013 11:58:00 AM

For many property owners, flood insurance seems optional or unnecessary. The mortgage company doesn’t require it, the house is paid off, the property isn’t in a flood zone – these are a few common justifications for not carrying flood insurance. Unfortunately, many property owners using these justifications are also finding themselves literally underwater. The frequency and severity of storms and weather patterns is changing, particularly with regard to hurricanes. Hurricane Sandy perhaps highlights this best with an estimated $20 to $30 billion in uninsured flood losses (Wall Street Journal). Given our recent flood related experiences, we believe it is time for all property owners to reconsider flood insurance.

Flood insurance covers the insured building, foundation, electrical systems, plumbing, appliances, heating and air, personal belongings, household items, and debris removal, just to name a few. It is important to note that flood damage is NOT covered by your homeowners policy.

Flood Facts:

-Flood policies start at $129 per year, but average $600 per year.
-The average flood insurance claim is $30,000.
-25% of claims filed within the National Flood Program occur within moderate-to-low risk areas.
-Flood insurance takes effect 30 days after purchase, so it is important to buy before the threat of a storm or high waters.
-Floods are the most costly natural disasters in the United States.

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Topics: Flood Insurance, Flood Facts, Personal Insurance