With the recent concern over Hurricane Joaquin, interesting statistics came out in the article “Why don’t property owners have flood insurance?” This article turns back to the destruction caused by Hurricane Sandy, causing $70 billion in damage where “less than half of those affected were insured”. Just a year later, flood damage further resulted in more than $5 billion in damage with less than one-third of those influenced insured. Current estimates are that less than 7% of homes have flood insurance, raising the thought-provoking question to why homeowners aren’t taking action to protect themselves from floods?
Turns out, one of the most damaging misconceptions is the thought that flooding is covered under homeowner or renter insurance, which in many circumstances, is not the case. This is followed by:
- Not understanding the breadth of coverage included in a given flood policy.
- Critical gaps in coverage that garners disinterest in investing in flood insurance altogether.
- A lack of interest in initiating insurance procedures.
This is an important example of when independent insurance agents become your best friend. Our job is not only to provide all the information necessary for you, leaving no misconception about whether your home insurance policy appropriately protects you, but also to:
- Handle the insurance jargon and outside company representatives.
- Represent multiple insurance carries, private and not, making it easier to find ways around flood insurance gaps.
- Quote different flood options and let you ultimately decide whether purchasing is in your best interest.
With all said, it’s important to realize there are many causes of flooding which can occur anytime of the year. During the Summer, Fall, and Spring there are dangers of flash floods, hurricane storms, and lake overflows. During the Winter there is the risk of excessive snow melt. Statistics show that a homeowner is more likely to suffer a loss from a flood versus other catastrophic events. With Hurricane Joaquin fresh in mind, we urge all to reconsider flood insurance and contact us for more information. We will be happy to discuss options and help you every step of the way.