5 Flood Insurance Myths

FloodSmart.gov, a component of the Federal Emergency Management Agency, states floods cause more damage than any other natural disaster in the U.S. annually. According to the website, the average claim for flood insurance was at $46,000 between 2011 and 2015, while total annual damages reached $1.9 billion between 2006 and 2015.

Flood insurance is a must-have for virtually all homeowners, especially those who live in areas that are more susceptible to the events. Unfortunately, many misperceptions abound when it comes to flood insurance that can leave a homeowner at risk of substantial loss.
Here are five top myths about flood insurance:

1. Homeowners insurance covers floods: This might be the most commonly believed myth about flood insurance, as well as the most risky. The National Flood Insurance Program, an agency that runs out of FEMA, notes that most homeowners insurance does not cover floods.

2. An NFIP policy is all you need: The NFIP offers policies to homeowners in most regions, but those policies have a maximum of $350,000. This might not cover the full range of your needs following a flood. Speak to your agent about Excess Flood insurance as well, which can help provide coverage at higher limits.

3. You don't live in a flood zone: Living in an arid climate or higher elevation, you might think your home simply does not reside in a flood zone. The NFIP points out that it takes only a few inches of water to cause significant damage to the home. While you might not live in an area that commonly experiences floods, the possibility of flooding exists in most locations. In fact, FEMA argues "everyone lives in a flood zone."

4. The federal government will make everything alright: Another extremely dangerous myth: You might think that a disaster assistance program from the federal government will return you back to financial health. However, this is not true. FEMA notes fewer than half of all flooding events lead to assistance. Additionally, assistance often comes in the form of a loan that must be paid back with interest - meaning it is not a replacement for insurance.

5. Always file a claim the next day: ABC News - a national media company - points out that homeowners should actually wait several days before filing a flood insurance claim. This is to ensure all of the damage has been assessed and identified instead of missing major policy points and coming up short with the coverage.

Don't wait until it's too late - For information on coverage, visit The Insurance Centers site or contact Zita Santos-Martinez at 732-832-4132 and #rethink your flood insurance today.

Photo and article courtesy of Selective Insurance Group