And time to review your flood insurance needs.
The 2022 Neptune Consumer Survey of Flood Risk Awareness shows that many homeowners who need flood insurance do not have that protection in place. Why? The Neptune survey revealed:
- Misunderstanding that their home insurance policy covers flooding when it does not;
- Perception that the risk of flooding at their home is lower than it really is; and
- Flood insurance is often not mandatory, unlike home and auto insurance.
Why buy flood insurance?
Knowing you can recover from a flood brings peace of mind. NO home is completely safe from flood potential. When just one inch of water in a home can cost more than $25,000 in damage, flood insurance can be the difference between recovery and financial devastation.
Flooding can happen anywhere at any time. Poor drainage systems, summer storms, melting snow, neighborhood construction, and broken water mains can all result in flooding.
In high-risk areas, there is at least a one-in-four chance of flooding during a 30-year mortgage. In low-risk areas, where flood insurance isn’t required, floods can still happen at any time. From 2014-2018, National Flood Insurance Plan (NFIP) policyholders outside of high-risk flood zones filed over 40 percent of all NFIP insurance claims. Business owners and homeowners in low-risk flood areas required one-third of all federal disaster assistance for flooding. 1
Regarding Federal disaster assistance, know that it is only available when there is a Presidential Disaster Declaration, and most flood events do not result in a declaration. Disaster assistance typically comes in the form of a loan that must be repaid…with interest.
Let’s get started n your review. It’s easy!
- Know your flood risk! Look up your address in the Flood Map Service Center to learn if you live, work, or travel in areas that are prone to flooding.
- Contact your insurance agent to review your purchase options.
- Then schedule an annual flood insurance check-up with your agent.
Peace of mind is a piece of heaven.