Flood Insurance

Perhaps one of the most misunderstood areas of insurance is flood insurance. Here are a few facts to help clear up some myths:

• Most (if not all) homeowners’ insurance policies specifically exclude coverage for damage caused by flood.
• Every home is located in a designated “flood zone”. Homes that are in close proximity to water, or in high-risk flood areas, are in high-risk zones – also know as “Special Flood Hazard Zones”. Other homes are located in low- to moderate-risk flood zones – also known as “Non-special Flood Hazard Zones”.
• In a high-risk area, your home has a 26% chance of being damaged by a flood during the course of a 30-year mortgage, compared to a 9% chance of fire.
• Roughly 25% of all claims paid by the National Flood Insurance Program are for policies in low- to moderate-risk communities.

(Source: National Flood Insurance Program (FEMA), 11/21/2005)

Flood insurance for homes in low- to moderate-risk areas can be as low as $112.00 per year. Why, then, do most people in these areas choose to go unprotected and risk a catastrophic loss of property? As illustrated by the facts above, every home is at some risk of a damaging flood.

To determine your flood risk, receive a quote, or get some additional information, click here or contact Aaron Mitchell at (302) 658-8055.