clock September 10, 2020 comments No Comments flowchart Flood InsuranceHomeowners InsuranceOur Blog tag
a row of flooded homes representing these 7 flood insurance myths

Flood insurance may seem like an unnecessary coverage, but nothing could be further from the truth.

Let’s debunk the myths and discover why this valuable coverage is an essential tool that protects you from significant financial loss.

Myth #1 – Home, Renter, & Business Policies Cover Flooding

False – standard policies typically exclude flooding. However, they usually provide coverage for sudden and unexpected water damage caused by events such as a burst pipe. Homeowners, renters, and business owners must buy flood insurance.

Myth #2 – Flood Maps Don’t Change

False – Flood maps can change due to building development, weather events, and other factors. Monitor your area’s flood risk through FEMA’s Flood Map Service Center. It’s constantly updated.

Myth #3 – Flood Insurance Isn’t Necessary in Low-Risk Areas

False – about one quarter of all flooding occurs outside of high risk areas. Floods are the most common natural hazard in the U.S and all areas are susceptible.

According to NRDC, climate change is also amplifying storm surge due to higher sea levels, which have doubled over the past 30 years in the U.S.

Myth #4 – Flood Insurance Isn’t Available for High Risk Areas

False – Any person that lives in a community that is part of the National Flood Insurance Program (NFIP) can buy a policy, even after a flood. If you don’t know whether your community participates, check the FEMA Community Book for Rhode Island.

Many people also mistakenly believe they can beat the odds, because they think the chances of flooding are slim when they live in a 100-year flood plain. However, the term actually means that your property has a 1 in 100 chance of flooding in any given year. You have equal odds of flooding every subsequent year.

Myth #5 – Flood Insurance Isn’t Available During a Flood

False – you can buy National Flood Insurance anytime, but there’s a 30-day waiting period. However, if your home or business is in an area that became high-risk due to a flood map revision (these occur frequently) the waiting period can be waived.

Myth #6 – The Government Will Pay for Flood Repairs

False – The government only provides federal disaster funds to flood victims if the area is declared a disaster zone. This happens less than half the time. Additionally, relief is usually in the form of a low-interest loan of approximately $5,000, which must be repaid.

Myth #7 – Minor Flooding Isn’t a Concern

False – Water penetration at any level can cause considerable damage to your home and property. FloodSmart.gov provides a tool you can use to estimate the staggering costs. The average claim of flood insurance policy holders is $30,000. Without flood insurance, you’ll pay out-of-pocket.

Don’t wait until your home is under water. Contact us to discuss your needs and protect your home today.

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