Aronson Insurance Blog

What will happen to all the snow? FLOOD INSURANCE!

NO MORE SNOW! By now we’ve seen our fair share of snow, but something we may not be thinking about is what happens when all of the snow melts? Did you know that flooding is the most common natural disaster in the US, yet many homeowners remain unprotected. Melting snow here in New England creates a high flood risks. In fact, as little as two inches of water can cause devastating damage to your home, and most homeowners policies will not cover this.

Homes in low risk areas account for 25% of all flood claims. Homes in a high risk area have a 1 in 4 chance.

Here are some interesting facts:

– Floods and flash floods happen in all 50 states.
– Everyone lives in a flood zone.
– Most homeowners insurance does not cover flood damage.
– Just an inch of water can cause costly damage to your property.
– A car can be carried away by just two feet of floodwater.
– Hurricanes, winter storms and snowmelt are often overlooked causes of flooding.
– Federal disaster assistance is usually a loan that must be paid back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month for 30 years. Compare that to $100,000 in flood insurance; which is about $33 a month in premium.
– If you live in a moderate-to-low risk area and are eligible for the Preferred Risk Policy, your flood insurance premium may be as low as $129 a year (around $11 a month).
– It takes 30 days after purchase for a policy to take effect, so it’s important to buy insurance before the floodwaters start to rise.
– In a high-risk area, your home is more than twice as likely to be damaged by flood than by fire.
– Anyone can be financially vulnerable to floods. People outside of high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding.
– The average annual U.S. flood losses in the past 10 years (2002-2011) were more than $2.9 billion.
– Since 1978, the National Flood Insurance Program has paid over $36.9 billion for flood insurance claims and related costs (as of 12/31/10).
– Over 5.5 million people currently hold flood insurance policies in more than 21,000 communities across the U.S.

Call us today to find out about flood insurance!