Flooding accounts for 90% of natural disasters in the U.S., yet only 4% of homeowners have flood insurance. Just one inch of floodwater can cause $25,000 in damage. While FEMA and the SBA provide disaster assistance, the average FEMA grant is only $5,000, whereas the average flood insurance claim is around $30,000 and does not require repayment.
Most homeowners cannot afford to cover tens of thousands of dollars in flood damage out of pocket. Therefore, protecting your finances means having the right insurance. The Insurance Information Institute recommends reviewing your policies with your insurance agent to ensure you have adequate coverage.
Consider the following questions for yourself and your insurance agent:
❓ Can I afford the repair or rebuilding costs for my home if disaster strikes? Construction costs are rising faster than inflation.
❓ Is my personal property coverage sufficient to replace everything I own?
❓ Can I afford to repair or replace my vehicle if it gets damaged?
❓Am I aware that most homeowners', condo, and renters' insurance policies do not cover flooding?
❓Do I have sewer backup insurance, particularly if I have a basement? This coverage is separate from flood insurance.
Flood insurance is essential if water can enter your home from outside, such as from overflowing rivers, lakes, or storm surges. Floods can happen anywhere, even in areas that have never experienced flooding before. You can obtain coverage through the National Flood Insurance Program or from private insurers; your agent can help you explore your options.
Don’t forget about your car—comprehensive auto insurance covers flood damage, along with fire, falling trees, theft, vandalism, and broken windshields. In 2022, about 300,000 vehicles were damaged or totaled by Hurricane Ian.
Act now! Flood insurance typically takes 30 days to take effect, so don’t wait until a storm is approaching. For reliable guidance, visit the Insurance Information Institute at http://www.iii.org.
