One of the most important exposures you may have to consider as a homeowner is the possibility of flooding. Whether it’s from a hurricane, a rainstorm, tropical depression, or other severe weather event, most people are extremely underinsured or in some cases carry no flood insurance at all. Studies show that even in situations where it is mandatory, it’s often barely enough to begin recouping all of your actual losses.
Sadly, many people mistakenly assume that their homeowners, businessowners, or other personal property insurance will cover losses resulting from a flood. Nothing could be further from the truth. Even in cases where National Flood Insurance Plan (NFIP) coverage is available, it will only cover losses up to $250,000 and in most cases this coverage is not nearly enough to repair and replace the damage and losses incurred.
Everyone lives in a flood zone
A few key points to remember regarding <a href=”http://www.ajbenet.com/personal-insurance/flood-insurance-excess-flood” target=”_blank”>flood insurance New York</a> are:
• Nearly 25% of all flood claims filed are from low risk flood zones
• Nearly 75% of all flood claims filed are from moderate and high-risk flood zones
• Quite often the coverage provided is not adequate for losses sustained, and
• Despite a lack of flooding, every area may be subject to a flood
It’s just a question of whether you live in a low, moderate, or high-risk area.
Changing weather patterns, residential development, and business development will significantly impact the chance of flooding in a particular area. You may not feel the need for flood insurance because the odds are much lower of a flood occurring where you live. Residents of areas that are prone to hurricanes and tropical storms are much more likely to need some form of flood insurance, either through NFIP or alternative markets available in their area.
When flooding is a real concern where you live, you’ll want expertise in helping you secure the right amount of flood insurance. Many companies specialize in the writing of flood, excess flood, and Costal Barrier Resources Act (CBRA) coverage in areas where flooding is prevalent. Speak to an agent who has great flexibility in addressing your flood insurance concerns.
Flood insurance can be difficult to understand. But it brings a tremendous amount of reassurance when the inevitable flooding occurs and the coverage is there to repair and rebuild the home you have worked so hard to obtain and keep in good condition.