4 Myths About Flood Insurance | Insurance Explained

Your homeowners insurance does not cover damage caused by floods, but almost everyone can qualify for flood insurance. Flood insurance from the National Flood Insurance Program (NFIP) can be purchased through Watkins Insurance Group. It covers physical damage to your property and possessions caused by floods.

At Watkins Insurance Group, we want you to be educated about all the risks you may face – before a loss occurs – so you can determine what insurance coverage is appropriate. We are in the middle of hurricane season, so now is a good time to review 4 myths about flood insurance.

Myth # 1: Flood is covered by home insurance

Most insurance policies will cover water losses like broken pipes and overflowing sinks. However, flood is specifically excluded

Now I feel that I need to explain what we mean by flood. For purposes of this video, a flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow.

Myth # 2: Only high risk areas need flood insurance.

According to the National Flood Insurance Program (or NFIP), almost 30% of the program’s claims occur in moderate- to low-risk areas. This group of claimants receive one third of the federal disaster assistance.

Myth # 3: Flood Insurance can be bought when the hurricane is close.

Flood insurance policies have a 30 day waiting period. So, if the weather forecast announces a flood alert for your area and you want to purchase coverage, it’s already too late. You will not be insured if you buy a policy a few days before a flood. Exceptions are made if the flood insurance is a condition of a mortgage.

Myth # 4: FEMA disaster assistance will cover it all.

For homeowners, FEMA grants are capped at $33,000 with the average grant being only $3000-$4000. It’s estimated that one inch of water can cause $25,000 of damage.

If you have further questions about flood insurance coverage, including premium costs and levels of coverage, Watkins Insurance Group is here to help. Give us a call to find out how you can extend your coverage to keep your family – no matter what happens.

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