Why should you buy flood insurance?
The short answer...
Flooding is the most common and costly type of natural disaster in the United States today. Flooding is more common today than in years past and can be an unpredictable event.
Flooding can cause extensive damage to homes and properties, leading to significant financial losses and emotional distress for homeowners. Flood insurance is specifically designed to help cover losses caused by flooding and can offer financial protection for homes, personal belongings and disruption in business. This, in turn, can help provide assistance for what could otherwise be a very challenging situation.
Now for the full answer!
Flooding can happen almost anywhere at almost any time.
Homes along the coast, where hurricanes are more likely to make landfall, are subject to storm surge flooding (for example, Hurricane Ian).
If you live in an area that is relatively flat, you are potentially subject to rapid accumulation of flood water from a heavy rainstorm, as well as ponding. Ponding occurs when the amount of rain is simply too much for the sewers to handle. The recent torrential rainstorm in Fort Lauderdale that caused the Fort Lauderdale-Hollywood International Airport to close for two days is an extreme example of ponding.
If you live on a hill or mountain, you may be subject to water rapidly running downhill to the river, stream, or valley at the bottom, also called sheet flow. The flooding in northern California a few months ago is an example of this sheet flow.
The bottom line is that many parts of the United States may be subject to flooding during a heavy rainstorm. In fact, many of the floods in the United States are not caused by hurricanes, but rather are caused by heavy rainstorms.
Flooding happens in different parts of the country at different times of year.
Coastal areas along the eastern seaboard or gulf coast are at a greater risk of flooding during hurricane season. Mountainous parts of the country have risk of flooding from snow melt in the spring or heavy rainstorms during the summer or fall. Areas along the west coast of the country are susceptible to flooding during the rainy season in the winter. Flat areas in the middle of the country are at risk of flooding from heavy rainstorms any time during the year.
Flood insurance can help protect your home and business.
Owning a home or business comes with a lot of responsibilities. Flood insurance is specifically designed to help cover losses caused by flooding and can offer financial protection for homes, personal belongings and disruption in business. This, in turn, can help provide assistance for what could otherwise be a very challenging situation. Most standard homeowners insurance policies and business owners policies exclude coverage for losses caused by flooding.
Flood insurance is a separate policy specifically designed to address the unique risks associated with flooding and resulting water damage. Therefore, individuals should consider the financial impact that a flood could have on their home, belongings or businesses and should consider purchasing a flood insurance policy to help protect against losses caused by a covered flood event.
There are various flood insurance options available for your home and business and an experienced insurance agent can help you make the best decision that’s right for you. Acrisure’s experienced team of flood professionals understand flood risk and flood insurance, leveraging industry-leading technologies to provide personalized flood insurance options from the some of best flood insurance companies in the marketplace. Reach out to Acrisure to learn more about your flood risk and what options are available to help you protect against losses from potentially devastating flood damage to your home or business and help you find the right flood insurance solution for you.
Stay tuned for more valuable information about flood risk and flood insurance.
Stay tuned to Acrisure Insights because we will be sharing more information about flood insurance, including why flood insurance is important, what flood insurance covers, why some people are required to purchase it while others are not, and other topics about flood insurance that you should know.
About the Author
Dan Freudenthal
President, Flood Practice Leader
Mr. Freudenthal is the national Flood Practice Leader at Acrisure. He is a nationally recognized expert in the area of flood risk and a regular speaker at leading risk management and commercial real estate conferences specializing in flood risk. Mr Freudenthal has also published numerous articles in real estate, risk management and insurance industry publications.