3 Things You Should Know About Flood Insurance

3 Things You Should Know About Flood Insurance

It’s been a little over a year since “The Great Flood” that hit South Louisiana, and since then I have watched friends and family work hard to rebuild their homes, lives, and businesses, while at the same time try to return to some form of normalcy. However, it hasn’t been easy. I have friends who are still not in back in their homes yet, and others who are struggling to get their businesses back to the pre-flood levels they were working at. Life has become determined by a “before the flood/after the flood” mindset, where people talk about what life was like before the flood, and what it is like now.

Flooding is a MAJOR issue in America!

As a matter of fact, flooding is the #1 natural disaster in America every year without fail. Why? Because so many of our natural disasters usually end up resulting in some kind of flooding, whether it’s a hurricane, snow melting, excessive raining, or just rain that causes other issues like backups in drainage. Flooding accounts for billions in losses every year, hundreds of lives lost, and sometimes causes whole communities to disappear.

When it comes down to it, most people don’t think they need flood insurance simply because they think floods only happen in low lying, swampy areas like South Louisiana. However, all 50 states are at risk when it comes to flooding because of the many disasters that can lead to flooding. If you have wondered about purchasing flood insurance, or you have questions concerning flood insurance, I have laid out 3 things I think you should know when it comes to flood insurance. I will dive deeper into flood insurance and flooding in future posts, but for know I wanted to lay some groundwork for you to understand some basics of flood insurance.

3 Things You Should Know About Flood Insurance

1.) Flooding is NOT covered under your homeowners insurance. 

3 Things You Should Know About Flood Insurance

Flood insurance is a separate policy and is NOT included in your homeowners insurance. Many people confuse their auto insurance (which in some cases if you have the right coverage will cover a flooded vehicle) with their homeowners insurance thinking they are covered. They are NOT!! Flood insurance is a separate policy that must be purchased through a licensed insurance agent.

There used to be only one source of flood insurance, FEMA/Federal Government. However, in recent years the market has opened up to some private flood insurance companies that are offering great rates for the same coverage you can get from the NFIP (National Flood Insurance Program) and FEMA.

If you want to shop your flood insurance or would like to get a quote please contact me.

2.) There is a 30 waiting period before your Flood Insurance goes into affect.

3 Things You Should Know About Flood Insurance

Often times people only think about flood insurance when they hear of a hurricane coming, or there is forecasted to be flooding and heavy rains in their area. However, if you only think about flood insurance at the last minute it is already too late. There is a 30 day waiting period on flood insurance and what that means is from the moment you pay for it, you must wait 30 days before the insurance goes into affect. So, if you are on the fence about flood insurance just know that every day you wait, you are putting yourself and your property at risk for another 30 days.

Question: Why is there a 30 day waiting period?

The government doesn’t want to be on the hook for people who wait to the last second, or who have communities already being affected by a flood to be able to get it last minute.

I know that sounds a little childish, but when it comes down to it, it is a smart move and makes people take responsibility for their property.

3.) Flood Insurance is actually very affordable in most cases.

3 Things You Should Know About Flood Insurance

Most people view insurance as a necessary evil, but I try to help my clients see insurance as a wise financial investment. Essentially insurance is paying another entity to take your risk of loss. Flood insurance is no different, and often times flood insurance is very affordable. The annual premium for a residential NFIP Flood Insurance policy starts at around $112 per year, according to FEMA, and increases according to the level of flood risk and amount of coverage needed.

That is super cheap.

Especially when it comes to the costs of other insurance products most people own like homeowners, auto, boat, etc.

Conclusion

3 Things You Should Know About Flood Insurance

When it comes to flood insurance the best thing you can do is get a quote and find out the cost of the insurance you need. Even if you are in a low risk flood zone (something I will cover in another post) you should look at purchasing flood insurance. Many of the homes flooded in the flooding here in South Louisiana in 2016 were homes that were in low risk zones and didn’t have flood insurance.

So, if you want to get a flood insurance quote comment below, shoot me an email at: swilson@midsouthagency.com or give me a call at 225-266-4573. I would be glad to help.

Until next time,

Shawn

 

6 Comments on "3 Things You Should Know About Flood Insurance"

  1. jessie palaypay | November 15, 2017 at 7:10 am | Reply

    You mentioned that all 50 states are vulnerable too floods. I am kinda wondering how that is possible if you live in a state that is not by a body of water like the ocean?

    Id figure that any state that is along a coastline would be the most vulnerable such as California, New York, Oregon, etc. Not so much a Nevada, or Colorado.

    Thanks for the insightfulness.

    • Hey Jessie,

           Yep.  All 50 states are vulnerable to flooding. Reason being is that flooding according to the NFIP (The National Flood Insurance Program) is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow. So, the reason all 50 states are at risk is because of things like heavy rains, snow melting, etc. etc. 

           While someone living high in the mountains of Colorado may not ever flood, those in the valley’s have a high risk of doing so (as an example.) Thanks for commenting. One last thing: according to FEMA, flooding is the number #1 natural disaster every year in America. Just a little flooding nerd fact.  Have a great one my friend.  

      Shawn 

       

  2. I like the points you have ,like most people I thought my insurance covered flood damage. I will certainly look into this although I am fortunate enough to live on high ground the plumbing might not be as effective in the extreme cold weather as I live in an old house.
    thanks for the advice

  3. I have never experienced any flooding like what you showed in those pictures, I feel bad for them.
    I currently own a home in the Midwest and when it rains heavy, the sewer back up into my basement. Comes up thru the floor drains. I have heard there is a fix for that but have not yet checked into putting a check valve on my main sewer line leaving the house.
    Can I get coverage for the type of flooding I just described?
    I will check back with you for the answer and I may have to check around for the best kind. Any recommendation?

    • Hey Bobby,

            There might be some coverage for that in your homeowners insurance as some cover sewage backup. Flood insurance is based on water backing up on two or more properties or homes. Check with your insurance agent on what your homeowners says about sewage. Please let me know how things turn out. 

      Shawn

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