Floods Are Not Covered By Most Insurance
Winter 2013-2014 has been and continues to be one for the record books. Nonstop winter storms have dropped extraordinary amounts of snow and ice. Thankfully spring with her warm temperatures is just around the corner. That’s the good news, the bad news is with warm spring temps, snow will melt, and ice thaws prompting long dormant rivers and creeks to flow again, right into your back yard and basement.
All though you may not live in a designated flood zone you may be surprised that flooding could become your problem. We think we’re safe because you don’t live anywhere near water or maybe our homeowner’s insurance policies are good enough.
4 Reasons To Get National Flood Insurance
- Every home is in a potential flood zone – Homes designated as low flood risk make up 20% of all flood insurance claims. If you live in a zone that only a Noah flood can reach, please disregard the rest of this article.
- General home insurance policies do not cover flooding – There’s nothing like the look on a homeowner’s face when they learn their current insurance doesn’t cover their losses and they have to come out of their pocket if they want to continue to live in their home
- Flooding is more expensive than the cost of a policy – recovering your home from a flooding episode may take up to 18 months and cost tens of thousands of dollars. Having to pay for this yourself would undoubtedly be unbearable as well as having to pay for somewhere else to live while your home becomes habitable again
- Never rely on the Federal Government to pay for your home when you are flooded. For you to receive assistance the government has to declare a disaster. Depending on the scale of the flooding this may not happen and you will be left on your own to meet the expense of restoring your home and belongings.
What Is The National Flood Insurance Program (NFIP)?
Do You Have Flood Insurance?
The National Flood Insurance Program was created via The National Flood Insurance Act in 1968 a move aimed at empowering communities that participate in the program to have an opportunity to purchase insurance to help mitigate theirs losses from, well floods from Uncle Sam. The original intent was for this program to pay for itself through the premiums stakeholders paid. Of course, this didn’t work out too well, as with many government subsidized programs what has been paid out and paid out has been far more than was taken in.
Flood Insurance Reform Act of 2012-2014
Key provisions of the legislation will require the NFIP to raise rates to reflect true flood risk, make the program more financially stable, and change how Flood Insurance Rate Map (FIRM) updates impact policyholders. The changes will mean premium rate increases for some—but not all—policyholders over time. Read More
How Do I Get National Flood Insurance?
The first step to getting flood insurance to be certain you live one of 21,000 or so communities that have some sort of flood plain management plan in place that the government likes. If so you’re cooking with gas, simply contact an agent who of course will be happy to sell you a policy.
Need More Reason To Get Flood Insurance Now?
- Storm leaves flood damage near Charlotte
- Nebraska Panhandle flooding spurs travel warnings
- Colorado Flooding – Six Months Later
- Flooding west of Laurel prompts rescue efforts
Folks, I could do this all day! Now is the time to get flood insurance. You don’t have to live by a river or the sea to find your stuff floating in a nasty pool of water.
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