From New Hampshire to Wisconsin to Maryland, state insurance commissioners throughout the country are urging residents to buy flood insurance. Flood insurance is particularly important as we count down to this year’s hurricane season. Your homeowners insurance may cover you for water damage from a burst pipe, but if your water problem was started by Mother Nature, you are likely out of luck since most policies do not cover flood damage.
While you may think your flood risk is negligible, floods and flash floods happen in all 50 states. Here are a few interesting flood facts you may not know:
- Your home has a 26% chance of being damaged by a flood during the course of a 30-year mortgage, compared to a 9% chance of fire.
- Last year, one-third of all claims paid by the National Flood Insurance Program. were for policies in low-risk communities.
- A car can easily be carried away by just two feet of floodwater.
- Last year, one-third of all claims paid by the National Fllod Insurance Program were for policies in low-risk communities.
- Most homeowners insurance does not cover flood damage.
To find out the risk for your home or your business, enter your address to create your flood risk profile and assess your risk of financial loss. Or check your local FEMA flood map. You can also use this interactive tool to see the inch-by-inch cost of a flood in your home – as little as an inch or two of water in your home can add up to thousands of dollars in repair.
Talk to your agent about flood insurance – if you are in a low to moderate risk zone, insurance can be very affordable. Your agent will know the options and will know if your community participates in the National Flood Insurance Program (NFIP), which helps homeowners, renters, and business owners to secure coverage.