If you don't live near a river, the ocean or other common high-risk areas, flood insurance may not be something you've thought about or think can ever affect you. The fact is, where it rains it can flood. Check out these 6 flood facts you need to know about flood insurance.
You Don't Need to Live Near Water to Experience Flooding
Everyone is at risk of flooding. In the past 5 years all 50 states have experienced floods or flash floods. Let's jump back to science class for a second and take a look at how flooding typically occurs. When rain falls more quickly than the ground can absorb the water, or that can be carried away by rivers and streams we get flooding. Think about areas that have already experienced a large amount of rain where the ground is over saturated, cities that have more concrete than soil or deserts and areas effected by wildfires where the ground doesn't absorb water as quickly.
Flooding Can Happen Outside of High-Risk Areas
Data indicates that between 20 and 30 percent of flood claims come from medium or low flood risk areas according to FEMA. There are even more extreme examples like Hurricane Harvey where it's estimated that over 70% of losses in the hardest hit areas were outside of mandatory flood coverage purchase areas (high risk-areas). Just because you live in a low-risk flood zone does not mean you are free of risk.
If you live in a high-risk area, you are more likely to experience a flood than a fire during your 30 year mortgage.
Flood Insurance Gives You Far Better Protection Than Disaster Assistance
You might be thinking "well, if I do flood, I can just apply for disaster assistance". There are a few caveats you may not know. First, most forms of federal disaster assistance require a Presidential declaration and even if declared, not all flooding incidents are awarded disaster assistance. If it does qualify, most forms of disaster assistance are in the form of a loan that must be paid back with interest. When you have flood insurance you are paid even if a disaster is not federally declared and no payback is required. Sounds like a much better plan doesn't it?
Flood Insurance is Affordable
The average flood insurance premium costs are only about $700 per year. That is a much more cost effective then paying back a $50,000 disaster assistance home loan that would cost an average of $240 a month for a repayment period of 30 years! Not to mention if you have no insurance and no disaster is declared, it means you'd have to pay for any damages and losses out of pocket with no hope of reimbursement.
Waiting Periods
The time is now to make sure you, your family, your home and financial future are protected. Many flood insurance policies have a waiting period so if you already see a hurricane coming it may be too late.
You Have Options
At 1st Direct we can offer NFIP, Write Your Own, as well as private flood insurance policies so we can find the right options to protect what you've built. Luckily you don't have to be an expert or spend a lot of time and research to find the right policy for the right price, you have 1st Direct and our 20+ years of flood knowledge on your side.
It is First Direct’s recommendation that any policy related decisions be thoroughly discussed and reviewed with a licensed insurance agent prior to changes or purchases taking effect.