Do You Need Flood Insurance?

Do You Need Flood Insurance?

Art Glasgow, Peck-Glasgow Insurance

 

Many consumers are still unaware that flood damage is not covered by their homeowner’s insurance policy.  Along with the perils of earthquake and sinkhole, flood is a standard exclusion in homeowner and other property insurance policies.  Many others simply do not believe the are not exposed to a flood risk.  I have heard many clients tell me, but I’m not in a flood plain.  The fact is, many floods damage property that is not considered a high risk flood area, and flood insurance is not hard to obtain.  here are a few interesting facts concerning floods:

 

1. Floods are the nation’s Number 1 natural disaster.

 

2. 25-30% of all paid claims are from low to moderate risk areas, yet a large percentage of residents in these areas do not have flood insurance.

 

3. In high risk areas, conservative estimates show that only one-third to one-half of residents have flood insurance.  In these areas, there is a 26% chance of flooding over a 30 year period, while only a 10% chance for a fire.

 

4. For a number of flood disasters in the past few years, only 10-20% of victims in high risk areas had flood insurance.  The remaining 80-90% percent had to rely on taxpayer-funded Federal disaster assistance, low interest loans, tax write-offs or savings to help them recover.

 

We are not immune to flooding in our area.  We suggest that you ask for a flood insurance quote from your agent.  The cost is typically inexpensive, and you can rest assured knowing the risk of flood has been transferred to your insurance company.  Peck-Glasgow Insurance offers Alabama Flood Insurance to homeowners and commercial property owners.