Have you been procrastinating over flood insurance coverage? If you live in the Southern part of the United States, flood insurance is now a necessity, not an option. With storms striking the coastal areas every year, both the risks and costs of flood damage are increasing. According to the Federal Emergency Management Agency (FEMA), flooding is the no. 1 disaster in the country. Further, a report commissioned by FEMA in 2012 showed that rising seas and increasingly severe weather are expected to expand the areas of the coastal United States at high risk of floods more than half (55 percent) by 2100.
Significant Flooding Events from 2014 to 2016
If you are still not convinced, FEMA’s data on significant flooding events from April 2014 to August 2016 outlined below might change your mind. A flooding event with 1,500 or more paid losses is considered to be significant.
To see data on flooding events prior to these dates including Hurricane Katrina (August 2005) and Superstorm Sandy (October 2012), click here. Since FEMA’s data was last updated in September 2016, it does not include Hurricane Matthew which left swaths of damage along the Southeast United States—from Florida to North Carolina.
Flood Insurance Mandatory with Some Mortgages
If you own residential or business property in high-risk areas like Florida, Texas, Mississippi and Louisiana, flood insurance coverage is now mandatory1 with mortgages from federally regulated or insured lenders. You should also be aware that although flood insurance is not federally required for properties in a moderate- to low-risk flood area, your lender may still require you to have insurance. Moreover, any government aid or financial assistance provided by FEMA is meant to supplement your flood insurance and not cover the cost of remediation.
Get Quotes for Flood Insurance Today
Typical homeowner’s policies may not provide flood insurance coverage. There are two types of flood insurance available to you in the United States—national or government-run flood insurance (run by FEMA through the NFIP) and private flood insurance. Rates depend on many factors, such as level of flood risk as well as the age of your home and type of construction. Private flood insurance usually offers more extensive coverage than the national program, but it may cost more as well. Some property owners use it to complement the NFIP coverage.
The experienced brokers at The Nowell Agency can assist you in finding the right flood insurance policy for your home. We take the time to explain the differences between the NFIP and private insurance coverage so that you can make an informed decision. We work with many different insurance providers to obtain competitive quotes, so you can count on us to give you the best value for your flood insurance dollars.