FLOOD INSURANCE: Who needs it?
The answer has always been: “You need it if the bank tells you that you need it.” That answer can cost you dearly. What would you think the most common Natural Disaster for Property Damage is? Most of us would say “Fire,” but we would be wrong. Fire accounts for only about 9% of all Property Damage. Flood accounts for almost three times that, or 26%. Almost everyone has insurance for Fire Damage, but few have insurance coverage for Flood.
The most dangerous time for a flood is when a very wet year follows several years of drought and is accompanied by high fire season. Sound familiar? Many experts are predicting a strong El Nino effect for next year due to large increases in water temperatures in the Pacific Ocean. NASA even went so far as to say it will not be an El Nino year but rather a Godzilla rain event. Are they correct? Who knows? What I do know is if it does take place, we have potential catastrophe for Property Damage.
I have talked to many people about this and I always get some of the same answers. Most people say they hope the weather predictors are correct and we get massive amounts of rain this year, we do need the water. However, when I ask them about what this desired rain event would do to the Property they own, I seem to get the same responses. “My Homeowners (or Business owners) Insurance will cover me.” Not true. It will not. Others respond that the Federal Government would help them out. This is a misconception that we have gotten from watching the news and seeing how the Federal Government helped out areas like New Orleans. The truth is that the Federal Government can in the event of a National Disaster loan people and businesses money to repair and replace but it is a loan and it includes interest.
The only thing that the Federal Government will “give us” is the opportunity to purchase Flood insurance to protect ourselves – and it must be purchased 30 days prior to the Flood event. In addition to the Government plan (National Flood Insurance Program or NFIP) many other insurance products exist to protect us in the event of Flood. Here is the interesting part; it costs less to cover your Property for Flood than it does for Fire. For me to cover my home, it is only costing me about $400 a year. What I get for that $400 is the peace of mind in knowing that I can now wish for rain and not worry about losing my home due to the very water I am wishing for.
The same holds true for your Commercial Buildings. Can you afford to lose your Property to water damage that is not covered by your current Insurance Policy?
Flood Insurance is easy and inexpensive. While there are many rules and regulations that accompany this insurance, you can count on us to help find you the best solution available.
We all want the rain. Wouldn’t it be nice to know that rain can’t take our Property away from us?
For more information, and a personal Fire insurance solution, send me an e-mail, or call today.
