The picture is courtesy of the Insurance Information Institute and depicts a home flooded into the first floor.
Unfortunately, the homeowner did not have flood insurance. Because homeowners' and renters' insurance does not typically cover flood damage (and their policy did not cover flooding), he is now caught between a rock and a hard place.
If you were unaware, 90% of natural disasters in the United States involve flooding, yet only 4% of homeowners have flood insurance. Just one inch of floodwater can cause roughly $25,000 of damage to your home.
While FEMA offers individual assistance, and you can get a low-interest loan (you have to pay it back) from the SBA, the average FEMA disaster grant (you don’t have to pay it back) is only about $5,000 per household. By comparison, the average flood insurance claim is nearly $30,000 and does not have to be repaid.
According to the Insurance Information Institute, a nonprofit consumer information resource, having the right types and amounts of insurance protects you and your family financially. Most of us cannot afford to pay tens of thousands of dollars out of pocket to fix flood damage or replace our homes if a catastrophe destroys them.
𝐁𝐄𝐋𝐎𝐖 𝐀𝐑𝐄 𝐒𝐎𝐌𝐄 𝐐𝐔𝐄𝐒𝐓𝐈𝐎𝐍𝐒 𝐓𝐎 𝐀𝐒𝐊 𝐘𝐎𝐔𝐑𝐒𝐄𝐋𝐅 𝐀𝐍𝐃 𝐘𝐎𝐔𝐑 𝐈𝐍𝐒𝐔𝐑𝐀𝐍𝐂𝐄 𝐀𝐆𝐄𝐍𝐓
✅ How much money would it cost me to repair or rebuild my home if it’s damaged or destroyed by a natural disaster or fire, and do I have enough insurance coverage to replace it based on the rising costs of construction materials and labor? Replacement costs are running double the U.S. inflation rate.
✅ How much would replacing all my possessions (e.g., furniture, electronics, artwork, clothing) cost, and is my insurance coverage adequate?
✅ How much money would it take to pay off my vehicle and purchase a new one if a flood destroys it?
✅ Am I aware that most standard homeowners, condo, and renters insurance policies do not cover flooding?
✅ Do I have a sewer backup insurance endorsement in case the water or sewage comes up through sewer pipes? This is separate from flood insurance but an essential add-on to your standard home policy, especially if you have a basement.
𝐖𝐇𝐘 𝐃𝐎 𝐈 𝐍𝐄𝐄𝐃 𝐀 𝐅𝐋𝐎𝐎𝐃 𝐈𝐍𝐒𝐔𝐑𝐀𝐍𝐂𝐄 𝐏𝐎𝐋𝐈𝐂𝐘?
This is necessary if water intrudes your home “from the ground up”; for example, a river, lake, or pond overflows, a storm drain backs up, or if you live by the ocean, a storm surge overtakes your neighborhood during a hurricane.
As we’ve seen over the last couple of years, flooding affects all areas of the U.S., and in my friend's case, in places that had not flooded before. The best way to protect yourself financially is to have adequate insurance coverage. There are dozens of options when purchasing flood insurance, including the federally-backed National Flood Insurance Program and private flood insurers. Your insurance agent can help you shop for coverage and get multiple quotes.
𝐘𝐎𝐔 𝐀𝐋𝐒𝐎 𝐍𝐄𝐄𝐃 𝐂𝐎𝐌𝐏𝐑𝐄𝐇𝐄𝐍𝐒𝐈𝐕𝐄 𝐂𝐎𝐕𝐄𝐑𝐀𝐆𝐄 𝐅𝐎𝐑 𝐘𝐎𝐔𝐑 𝐕𝐄𝐇𝐈𝐂𝐋𝐄 𝐈𝐅 𝐓𝐇𝐄𝐘 𝐅𝐋𝐎𝐎𝐃!
For perspective, in 2022, approximately 300,000 vehicles suffered total losses to flooding from Hurricane Ian. Comprehensive coverage provides “non-collision” coverage, including car fires, trees falling on your vehicle, theft, vandalism, and cracked windshields.
𝐓𝐇𝐄 𝐓𝐈𝐌𝐄 𝐓𝐎 𝐓𝐀𝐊𝐄 𝐀𝐂𝐓𝐈𝐎𝐍 𝐈𝐒 𝐍𝐎𝐖!
A flood policy typically takes 30 days to take effect. Please don’t wait to add this critical insurance coverage until the storm arrives. I don’t want you or your family to go through what my friend and his family are dealing with now.
For helpful information about insurance, visit the Insurance Information Institute → http://www.iii.org Please Repost this message to your neighbors on Nextdoor by clicking the share button/arrow below.
