Flooding is the most expensive natural disaster in the U.S. each year, and it is involved to some degree in approximately 90 percent of all natural disasters nationwide. As of 2015, the average flood insurance claim cost a staggering $43,000.
Since flooding is not covered under homeowners insurance coverage, insuring against such a loss requires a stand-alone policy designed to protect a home and its contents against loss. But what if you live in a low-risk area? Do you still need coverage? Continue reading to learn why flood insurance is an important type of coverage that should be considered by nearly everyone.
Moderate to Low-Risk Areas
If you live in a moderate or low-risk area, do not sell yourself short on the benefits of flood insurance. Even if you are not required by a mortgage lender to have flood insurance, purchasing it could save you up to a year’s income or more if you ever need to file a claim.
One in five flood insurance claims is made by people outside of high-risk areas. One in three claims for federal flooding disaster assistance come from people in low to moderate-risk regions. For those individuals, the path to rebuilding means paying back a disaster loan for several years with interest.
While a history of floods is a good indicator of future ones, you also cannot assume that you will never experience flooding if you live in a historically dry area. Changing weather patterns, rapidly developing communities, and changing topography can all contribute to first-time floods. Not to mention, Arizona is exposed to multiple flood hazards, including
- Snow melt
- Burns scars/debris flows
- Dry wash
- Dam breaks
- Flash flooding
- And more
The good news if you live in a low or moderate-risk area is that you may qualify for a preferred policy with excellent benefits at low rates. In fact, some homeowners pay less for an entire year of flood protection than they do for a single utility bill or a week’s worth of groceries. The key is to take the initiative and request a flood insurance quote.
We can answer any questions you may have about the National Flood Insurance Program and help you get the coverage you need. If you are considering flood insurance for your home, do not delay. There is a 30-day waiting period before coverage becomes effective. Waiting too long could be too late.
Coverage for Additional Water-Related Losses
Here at Vanyo Insurance, we offer much more than flood insurance to protect your home against water damage. A truly comprehensive homeowners insurance program should include coverage against overflows and water discharge. Because of this, we strongly suggest an endorsement to protect your home against sewer and water backups.
According to the Insurance Institute for Business and Home Safety, drain system failures are among the top five causes of water-related losses in U.S. homes. If it happens to you, a sewer and water backup endorsement helps ensure your home is cleaned, sanitized, and repaired. It can also replace any contents in your home that were damaged by the backup.
If your home is uninhabitable due to the damage, you can lean on your homeowners insurance to help cover the cost of temporary shelter.
Do you have insurance that covers you against flooding and sewer backups?