Every property is vulnerable to flooding. Flooding can happen anywhere, at any time. In fact, more than 20 percent of the NFIP’s claims come from outside high-risk flood areas. That’s why it’s important to protect the life you’ve built with flood insurance, even if you live in an area with low-to-moderate flooding risk.
Property owners located in low-to-moderate risk areas should ask their agents if they are eligible for the Preferred Risk Policy, which provides flood insurance protection at a lower cost than a standard policy in a high-risk area. The low-cost Preferred Risk Policy is ideal for homes and other properties currently mapped in low-to-moderate risk areas—and it costs homeowners an average of $439 a year
Most homeowner’s insurance does NOT cover flood damage. Unfortunately, many property owners do not find out until it’s too late that their policies do not cover flooding. The NFIP offers a separate policy that protects your single most important financial asset— your home or business. You can insure your condominium unit or home with flood insurance for up to $250,000 for the building and up to $100,000 for the contents. Property owners can insure their commercial properties for up to $500,000 for the building and $500,000 for the contents.
In the event of a flood, federal disaster assistance may be limited or unavailable. Federal disaster assistance is available only if the president declares a disaster. Your home is covered by flood insurance even if a disaster is not declared. Disaster assistance comes in two forms: A U.S. Small Business Administration loan, which must be paid back with interest, or a FEMA disaster grant, which is about $5,000 on average per household. Both programs have strict eligibility requirements based on individual need and many disaster survivors may not qualify. By comparison, the average flood insurance claim is nearly $30,000 and does not have to be repaid.
Contact a flood insurance specialist at Prysock Insurance Group to see how a flood insurance policy can give you peace of mind.