Should I Purchase a Flood Policy?

Should I Purchase a Flood Policy?

I get this question all the time, and my answer always the same. YES! For the cost of the policy, it is well worth the coverage! But, many home owners are still confused.

Well, a Flood Policy is the only policy that covers a ‘flood event’! And what is a flood? Well, FEMA has defined flood as:

“A flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow” [Floodsmart.com]

Here is the confusion? Broken pipes, overflowing bath tubs, rodents eating into a pipe causing it to burst(that really happens), etc., are not flooding events that trigger coverage on a Flood Policy. HomeOwner’s policies may be able to afford that coverage to you!

Where a Flood Policy comes into effect is hurricanes, broken levees, outdated or clogged municipal drainage system, and rapid accumulation of rainfall. Just because you have not experienced a flood in the past, doesn’t mean you won’t in the future. Flooding is based on a number of factors such as, rainfall, river-flow or tidal-surge, topography, new building construction, flood control measures, among others. [Floodsmart.com]

In my many years of being an Insurance Agent, I have probably been told, “I am not in a flood zone, so I am not worried about flooding”! Well, newsflash, we are all in a flood zone!!!

If you are in flood zones ‘A’ or ‘V’ (high risk flood area), then your mortgage company will require you to carry a flood policy on your building. Well, of course they do, because they want to protect their investment, or your loan! If you are not in ‘A’ of ‘V’ (high risk), then you fall into the ’B’, ‘C’, or ‘X’ (low risk) flood zone, or, you qualify for a Preferred Risk Policy! See how they are all Flood Zones? Everyone is in a flood zone!

It is also important to point out that “1 in 3 flood claims are in Preferred Risk zones” [Floodsmart.com]! So, just because you are not forced to have a flood policy, does not, by any stretch of the means, mean you should not buy one to protect your home from flooding!

Do not wait until we have a hurricane headed our way in the Gulf of Mexico, or heavy rainfall, causing water to reach your front porch though. Because there is a 30-day waiting period from payment date until the coverage begins.  

Typically, a Preferred Risk policy in our area, League City, Dickinson, Friendswood, Seabrook, and surrounding areas, will cost between $400-$600/year. The average flood claim in 2018 was $42,580! Do the math!

So, the short answer is YES! But I hope that I have given you enough information so that you can make an informed decision for yourself and your family. After all, your home is a large investment! Let’s PROTECT IT! Call us if you have any questions, or if you would like to get more information on our flood policies!