Why Do I Need Flood Insurance

Jul 31, 2014 12:53:27 PM |

Posted by The Southern Oak Team

| Category: Flood Insurance, Insurance 101, Policy Add Ons

Flooding is the #1 ranked natural disaster in the country and yet there are 3 common misconceptions about flood insurance that permeate in the United States.

#1 My Homeowners Policy Covers Flooding

flood insurance

Your homeowners insurance policy more than likely does not cover flooding. You may have optional coverage for back-up of sewers and drains, but flooding caused by natural disasters, or similar events are provided by different agencies such as The National Flood Insurance Program to allow policy holders the maximum flexibility in coverage and save them money with lower premiums.

#2 I Don’t Live in a Flood Zone, So I Don’t Need Flood Insurance

Believe it or not, we all live in a flood zone which has the potential to fill with water any time. The difference is the severity or risk of flooding in your particular zone. However, industry-wide, over 20% of all flood claims come from people who are NOT in high risk areas, and 1/3 of all disaster assistance goes to flooding victims according to FEMA. So we’re all at risk. Per the National Flood Insurance Program, flooding is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow caused by various conditions such as severe storms and sources of rapid water accumulation.

#3 Flood Insurance is Too Expensive

Depending on the level of your risk zone (determined by FEMA), flood insurance is available for as little as $57/year and averages as little as $129/year for those in “Preferred Risk Zones.” Even in higher risk areas, flood insurance is typically less than $400/year which is much less than the costs associated with recovering after a flood. Cost estimates by estimate that just 1” of water in a 2,000 sq. ft. home can cause over $20,000 in damage.

If you don’t already have flood insurance, contact a Southern Oak representative to discuss options, or search for an independent agent near you to get a quote.


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