Why Do I need flood Insurance?
In the past 5 years all 50 states have experienced floods, or flash flood. Florida, in 2014 accounted for over 2655 flood claims with over $117,861,100 in money paid to policyholders. This in a year where there were no major storms had a direct hit on the state. Individuals have no idea that Flood is not included in there homeowners insurance, and are shocked when they need to make a claim. Below are some interesting facts about flood insurance and why this is an important coverage to buy, even when you don’t live in a flood zone.
• According to the National Flood Insurance Program (NFIP) 20% of all flood insurance claims occur occur in preferred flood zones, and receive 1/3 of Federal Disaster Assistance
• A car can easily be carried away by just two feet of rushing water
• Just a few inches of water from a flood can cause tens of thousands of dollars in damage
• In high risk area, your home is more likely to be damaged by flood instead of fire
• If you do not have flood insurance, and require Federal Disaster Assistance it is usually a loan that MUST be paid back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month ($2880 a year) for 30 years. Compare that to a $100,000 flood insurance premium which is about $400 a year
• In 2010 to 2014 the average flood insurance claim amounted to nearly $42,000
As you can see, flood insurance is an important coverage and should be something everyone should consider. No matter where you live.