Do You Really Need Flood Insurance If You Don’t Live In a Flood Zone?

FloodDuring tough economic times, everyone’s looking to save a few bucks here and there, especially when it comes to major expenses like insurance. However, skimping on coverage is a quick way to find yourself in a pretty precarious position when disaster strikes. Sure, it might not seem like you need flood insurance, especially if you don’t live in an area that’s prone to flooding often, but failing to protect your home and possessions can lead to serious repercussions. To help give you everything you need to make a smart decision regarding this kind of coverage, here are the top reasons why you need flood insurance, even if you don’t live in a flood zone.

There Is No Such Thing as a “No-Risk” Zone

One of the biggest misconceptions surrounding floods comes from the notion that some homes can completely avoid these calamities. According to the National Flood Insurance Program, there is at least a 25 percent chance that flooding will occur in a home during the course of a 30-year mortgage. The main cause for this unexpected flooding in seemingly safe areas comes from rapid rainfall, snowmelt, broken water pipes, and damaged drain systems.

Even hillside homeowners run the risk of dealing with mudflow damage, which is generally covered under the Standard Flood Insurance Policy. To put it simply, your home might be in a low-risk area, but there’s no way to completely negate the threat of flooding, regardless of where you live.

Gambling with Your Finances Is a Bad Call

For some homeowners, flood insurance isn’t a required part of a mortgage agreement, so it makes sense to at least consider avoiding the policy premium. Unfortunately, what seems like a safe bet is one of the biggest gambles you can make when it comes to your future finances. According to Alice Holbrook of USA Today, a quick breakdown of the math related to flood insurance risk and damages shows that it’s simply not worth bluffing.

For minimal amounts of flooding in a 1,000-square-foot home, the damage could reach up to $27,150. While that’s bad, the average claim each year stands at around $38,000, so the previous estimate looks more like a best-case scenario than the top end of the damage spectrum, especially if you own a bigger home. When you compare these numbers to your yearly insurance premium, it’s easy to see why playing it safe is your only option.

Flooding Happens Where You Least Expect It

The final reason you need flood insurance comes from the fact that 25 percent of all flood damage claims come from low-risk areas, according to the Federal Emergency Management Agency (FEMA.) Although flooding primarily takes place in the obvious low-lying regions and locations near major waterways, it’s still a reasonably common occurrence elsewhere. The reality is that you can never truly escape the threat of flooding, so your best bet is to put what you’ve learned here to good use and pick up a plan. This way, if disaster ever strikes, you’ll have everything you need to ensure that you and your family can recover and move on with life as quickly as possible.

Advertisements

Whether you are looking to insure your automobile, home, mobile home, motorcycle, watercraft, or if you need coverage for your business such as general liability, workers compensation, commercial auto, E&L Insurance has you covered! Let’s face it! Shopping for insurance can be a grueling process. Here at E&L Insurance, we focus on counseling customers on the best coverage options, at the best possible rates. What makes us different from other agents? As an independent insurance agency, we are appointed and represent the most reputable insurance companies in Florida. This allows us to provide more options, at a higher level of service that other agents cannot offer. Our customer service representative are here to help you in all your insurance needs. Call us today at 888-700-4049 or visit www.eandlinsurance.com! Se Habla Español

Tagged with: , , ,
Posted in Home, P&C

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: