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What You Need to Know About the Importance of Flood Insurance

Did you know that all Americans live in a flood zone? Were you aware that your homeowner's policy doesn't cover floods? Everyone in the United States lives somewhere flooding can happen -- the only difference is that designated areas are labeled as zones with a varying degree of risk (low, moderate or high). And many people assume that their homeowner's policy covers flood damage, but that's not the case. Flood insurance needs to be purchased separately.

Importance of Flood Insurance

These are just two things that people are surprised to learn about floods and insurance. Consider these additional "Flood Facts" from The National Flood Insurance Program:

  • In the past five years, all 50 states have experienced floods or flash floods.
  • Just a few inches of floodwater can cause tens of thousands of dollars in damage.
  • In a high-risk area, your home is more likely to be damaged by flood than by fire.

Flooding is the most common natural disaster in our country, but many homes are not covered by flood insurance. This could be partially due to the fact that some people may assume if they live in an area of low- or moderate-risk they do not need flood insurance; that is a myth. Any home, anywhere can be damaged by flooding. For example, according to FEMA, "more than half of the dwellings damaged by Louisiana's August [2016] floods were located in moderate- and low-risk areas."

If you live in a high-risk area, there is a one in four chance that you will experience a flood. Those who live in a high-risk area are required to purchase flood insurance if they have a mortgage through a federally regulated or insured lender. You can find out what risk level your zone is with The National Flood Insurance Program's Flood Map Service Center.

The National Weather Service says floods are more common than tornadoes, earthquakes, and fires, and they've resulted in more than nearly $20 billion in losses over the last decade. It's crucial for homeowners to protect themselves against these kinds of losses. Flood policies cover damage federal disaster assistance that most homeowner's insurance do not cover. Depending on coverage, plan holders may receive up to a $250,000 for home damage, plus additional funds toward their home's contents.

When you consider these facts and figures, it's easy to understand the importance of flood insurance. At Moyer & Moyer, we believe "it’s better to prepare and prevent than repair and repent" and that includes having flood insurance. Contact us today to learn more.

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