FLOOD MYTHS

1. Flood Insurance is only for high risk areas

Flood maps change. Just because you weren’t on a flood plain when you bought your home, does not mean you are not in one now. New construction and urban developments can increase the chance of flooding. As land is converted into roads and parking lots, it loses its ability to absorb rainfall and water can begin moving down streets and into basements (weather.gov).

Low risk doesn’t mean there is no risk.  People outside of high-risk flood zones file more than 20% of all NFIP claims and receive one-third of federal disaster assistance for flooding (FEMA). Flooding can occur anywhere. In fact, it is the number one natural disaster in the United States.

2. My Homeowner’s Policy covers flood

​When it comes to homeowners insurance, not all water damage is the same. Think about water damage from the top down versus from the bottom up. 

Top down may be covered by homeowners:
            If your roof if damaged in a storm causing water to come in that would most likely be                         covered under your homeowners insurance.

​Bottom up may not be covered: 
             If a riverbank overflows onto your street, you most likely would not be covered

3. I only need Flood Insurance if my mortgage company requires it

Over 50% of the people impacted by Hurricane Harvey flooding likely didn’t have flood insurance, according to analytics firm CoreLogic (FoxBusiness).
Banks and mortgage companies rely on FEMA to define high and low risk areas. A recent study found that FEMA failed to capture 75% of flood damages within their maps between 1999 – 2009. That means that your mortgage company is relying on information that is not always correct and is constantly changing (Forbes).
Tell your customers: don’t leave it up to the bank to determine whether or not you need flood protection.

4. If my property has flooded in the past, I can’t get coverage now

People tend to associate floods with a total loss, but the average flood claim for U.S. homeowners is about $39,000, according to the flood insurance program (bankrate.com).
Tell your customers: you can purchase flood insurance at any time, as long as your community participates in the NFIP. However, there is usually a 30-day waiting period after the premium payment before the policy becomes effective.