Natural disasters, such as flooding, are more common than people think. While we all think that disasters happen somewhere else and hope we are safe, the reality is, no location can be considered a no-risk zone. Adding onto that, as the climate is becoming more unpredictable, risks are also changing: a zone that might have been considered low-risk before, could now be moderate- or even high-risk.
It is probably better to be slightly overprepared than underprepared, especially for the
Although it is common to think that homeowners, condos, renters, or business insurance also covers damage caused by a flood, this is often not the case. Normally, flood insurance needs to be bought separately. Check with your insurance provider whether your existing policies cover flood or not.
Flooding is caused by hurricanes, rainfall, snowmelt, tidal surges, and other events.
With the National Flood Insurance Program (NFIP) policy, you can be covered for both damages to the building and loss of your furniture and other possessions. The
Just like all other insurance policies, flood insurance is based upon a range of factors that are used to estimate your risk. You can use these factors to pay less on your flood insurance each year.
The more steps you take to mitigate a flood, the lower your premiums are. Plus, the more protected you will be in the first place. Mitigation strategies include:
Elevating one’s property or relocating is usually costly and time-consuming, thus not something people can consider until they need to rebuild their house. NFIP provides funding up to $30,000 to help elevate or relocate some properties that need help after a flood. These are known as Increased Cost of Compliance grants.
By increasing your deductibles, you naturally decrease your premiums. However, ensure you have enough money saved up to be able to pay the deductible once a flood strikes.
Elevation certificates prove that your building’s elevation is sufficient during a major flood in your area. If you meet the requirements, you can reduce your costs even in a high-risk area.
Communities enrolled in the Community Rating System may receive discounts if they exceed the minimum program requirements for lowering the risk of flooding.
Flood insurance can cost about $700 for $250,000 in coverage per year. Your costs may depend on several factors including:
While not all floods can be avoided, huge financial losses can be. Send us an email and we will help you protect your home and valuables to the best extent possible.