Flood insurance seems very straightforward:
You buy or build a home near water. You know you’re running the risk of flooding. As a responsible homeowner, you purchase a homeowner’s insurance policy. Now you’re covered for flooding. Right? Most likely, no.
In fact, there are a couple of costly assumptions in this seemingly simple statement.
Consider this: It’s spring and it’s been raining more than normal. The weather is looking downright nasty and the storm drains in your neighborhood are already blocked and filling up. When the water starts to creep down in your basement it will take less than a foot of water to cause tens of thousands of dollars in damages.
You didn’t get a flood insurance policy because you’re not in a flood plain. There’s not a river or lake within 75 miles of where you live. But floods aren’t only caused by rivers and lakes. They also result from levee or dam failures, broken water mains, and in the scenario above, clogged storm drains. In fact, according to FEMA, 99% of US counties were impacted by floods between 1996 – 2019. The numbers speak for themselves; your home will, at some point, most likely be subjected to flood waters.
It should also be noted that the average homeowner policy doesn’t cover flooding. And while you likely feel you already pay too much for insurance, we at Snyder Insurance think not being properly covered comes at an even larger price. The National Flood Insurance Program reports that the average flood payout claim in 2019 was $52,000 and the average annual flood insurance policy premium in that same year was just $700.
When you weigh it out, paying tens of thousands of dollars out of pocket versus a few hundred dollars a year seems like a simple choice. One that your Snyder insurance representative is happy to talk over with you.
For more information or to add this coverage to your existing homeowners policy, get in touch, we’re here when you’re ready.
Sources: Fema
