Feature Photo by Kelly Sikkema on Unsplash
6 Facts You Should Know About Flood Insurance
In light of the recent events happening in Texas due to Hurricane Harvey, it is important for homeowners to know the facts about floods and flood coverage. The latest figures suggest that roughly 80% of the victims did not have proper flood coverage. To educated consumers on the dangers and the impact that flooding has on homeowners, we out together 6 fast facts you should know about flood insurance. These tidbits will make you more aware as well as encourage those in high risk areas to consider investing in proper coverage.
Floods are No. 1 disaster in U.S.
According to the National Flood Insurance Program (NFIP), floods are the number one natural disaster in the U.S. They calculate that consumers outside of high-risk flood areas account for more than one in five flood insurance claims.
20% of insurance claims come form low risk areas
Statistics show that more than 20% of all flood claims are filed by homeowners that reside outside of mapped high-risk areas. The myth is that homeowners are unable to obtain flood insurance if they live in low risk areas. However, those residing outside of high risk areas can obtain low cost coverage that will cover the building and its contents.
Average flood claim is $39,000
According to FEMA the national average flood claim is around $39,000. Although many associate flood claims with total loss, this statistic includes partial damage and losses as well.
The Average Cost of flood policy is $700 per/year
Your home is is one of if not the biggest investment you’ll make in your life time. Which is way you should always asses your homes risk to flooding. It’s always a great idea to protect your investments.
100-year floods can happen 2 years in a row
According to The USGS Water Science School. “Statistically, each year begins with the same 1-percent chance that a 100-year event will occur. But, just because a 100-year flood happened last year doesn’t mean that it won’t happen this year, too. In other words, future rainfall and floods don’t depend on the rainfall and floods that happened in the past.”
You’re Statistically More Likely to be Impacted by a Flood Than Fire
According to FEMA, during a 30-year mortgage, property owners located in high-risk flood zones have a 26% chance of experiencing flood damage,
compared to a 9% chance* of experiencing a structural fire.