Doesn’t mean your property isn’t still at risk! Did you know more than 20% of flood insurance claims come from people outside of mapped high-risk flood areas? That means those people who were marked “in a moderate-to low-risk flood zones” still experienced flood damage to their home. FEMA’s new Flood Insurance Rate Maps have moved many counties in the Southeast, United States, to low-risk zones, so flood insurance is no longer required. This does not mean you should drop your coverage. (See what can happen when you’re not in a high risk zone, and heavy storms come through.)
Not only is flood insurance inexpensive, it can save you thousands of dollars in damage when the unexpected occurs. Below are a few other reasons why you shouldn’t drop your coverage:
Anywhere it rains, it can flood.
Flooding is the most common natural disaster. You don’t need to live near a coastline or river to be flooded, look at the devastating floods that just happened in Louisiana as an example. Flash floods, inland flooding, and seasonal storms bring flooding to every region of the country.
Just a few inches of rain can cause thousands of dollars in damage.
Access the NFIP’s Cost Flooding tool to simulate the costly damage that only a few inches of water can cause. Did you realize that two inches of water in a 2,000 sq. ft. home can cause $21,000 in damage or more? The low cost of a Preferred Risk Policy can save you thousands of dollars in repair bills.
“My mortgage company says I can cancel my flood policy.”
You may receive documentation from your mortgage company advising that you are no longer required to carry flood insurance. While mandatory flood insurance may not be federally required, your property is still at risk of flooding. Over 20% of all primary flood claims are reported in moderate-to-low risk areas. If you qualify for the preferred risk program, you can ask your agent to change your policy to the PRP form, and get a refund for the difference mid-term from your insurance carrier after the maps are updated.
Preferred Risk Policies provide flood protection at the best price.
For as little as $146 a year qualifying homeowners can purchase a minimum coverage policy of $20,000 building and $8,000 contents.
Anyone can be financially vulnerable to floods. You don’t want that to be you, do you? Just because the map has told you otherwise, doesn’t mean you are safe. Your Bankers agent is here to help you with these most recent changes. Stay “flood smart” and protect your largest investment.