With the recent hurricane activity and the overall wet season passing by, our Mid-Atlantic based agency tends to get a lot of questions about flood insurance. What it covers, are they covered, and how to obtain a flood insurance policy.
Our flood insurance specialist at The Staples Agency are always ready to advise and help with these questions when you are ready to chat, but we wanted to give some basic flood insurance facts if you happen to simply be seeking information on the topic. Here are 5 useful facts about flood to get you started in your research.
Flooding is the most frequent and expensive natural disaster in the United States, accounting for 90% of all natural disasters.
This data, which was provided by the Federal Emergency Management Agency (FEMA), is astounding when compared to other types of natural disasters that are frequently reported, such as wildfires, earthquakes and tornadoes. Even more justification to have flood insurance in your insurance and risk-management portfolio.
Many different factors, such as snow melt, intense rain, flash floods, and mudflows, can result in flooding.
It’s a popular misperception that having any risk of flooding requires living close to water. While there are numerous other reasons that could cause flooding, this may significantly raise your risk. Over 40% of all claims made via the National Flood Insurance Program (NFIP) originate outside of high risk zones.
Flood insurance is always available to purchase. With the “standard wait period” the policy won’t go into force for 30 days after you pay the premium.
There are a couple of exceptions that will allow you to bypass the standard wait period:
- A flood insurance policy is a requirement from the mortgage lending company for the purchase or refinance of a loan
- The waiting period is only one day if the initial flood insurance purchase is made within a year after the community’s adoption of a revised Flood Insurance Rate Map.
The National Flood Insurance Program has paid out more than $72 billion in claims since 1978.
Even insurance industry professionals find this astounding after considering this and fact #1. It demonstrates not only how frequent flooding might be but also how catastrophic floods historically have been during the past 40 years.
Sadly, a lot of homeowners do not realize that their homeowner’s insurance does not cover flooding.
This alone should motivate you to get in touch with an insurance expert and inquire about flooding coverages and what can be done to better safeguard you and your home. When you’re ready to discuss flood insurance, get in touch with a specialist at The Staples Agency for assistance. We’ll be pleased to go over your options and make sure you’re protected from floods.