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CONSUMER CORNER—Why You Should Purchase Flood Insurance

  • Post category:The Dry Log

No home is completely safe from potential flooding. When just one inch of water can cost more than $25,000, flood insurance can be the difference between recovery and financial devastation.

Rytech reached out to FEMA and the National Flood Insurance Program for some helpful advice and some FAQ’s on why you should purchase flood insurance.

Why should I purchase flood insurance if:

Q: I already have a Homeowner’s insurance policy?

A: Most homeowners insurance does not cover flood damage. Only flood insurance covers the cost of rebuilding after a flood.

Q: My community has never flooded?

A:  Flooding can happen anywhere at any time. Poor drainage systems, summer storms, melting snow, neighborhood construction, and broken water mains can all result in flooding.

In high-risk areas, there is at least a one-in-four chance of flooding during a 30-year mortgage.

Q: I live outside the high-risk flood area?

A: Even though flood insurance isn’t required for your property, flooding can happen to anyone.

In fact, from 2014 to 2018, policyholders outside of high-risk flood areas filed over 40 percent of all NFIP flood insurance claims and required one-third of federal disaster assistance for flooding.

Property owners in the moderate to low-risk flood areas are eligible for lower-cost Preferred Risk Policies (PRPs). The PRP provides the same building and contents coverage at a more affordable price.

Q: My home flood damage could be covered by federal disaster assistance?

A: Federal disaster assistance is only made available when there is a Presidential Disaster Declaration, and most flood events do not result in a declaration. Disaster assistance typically comes in the form of loans that must be repaid – with interest!

Disaster assistance from FEMA and the U.S. Small Business Administration is designed to kick-start recovery but, it’s not enough to restore your home to its pre-disaster condition or to replace your treasured household items.

Flood insurance does not have to be paid back, and it is designed to restore your property to its pre-disaster condition. There is no better way to protect the life you’ve built than with NFIP flood insurance.

Q: I’m renting a property?

A: It’s likely your landlord has flood insurance that covers the building, but not its contents.

Affordable, contents-only flood insurance will help you protect the items inside of your unit in the event of a flood.

Want to buy flood insurance? Call your insurance agent, the same person who sells your home or auto insurance.  For more information contact FEMA below.

FEMA | National Flood Insurance Program 
500 C St SW, Washington, D.C. 20472

Disaster Assistance: (800) 621-FEMA
floodsmart@fema.dhs.gov