Protect Yourself from Flood Losses
Recent flooding as well as all the extreme weather across the US have property owners on edge. Natural disasters seem to be happening with much more frequency in current times. We cringe at the nightly news coverage of wildfires, earthquakes, hurricanes, and the most prevalent of natural disasters: flooding.
Predicting flood loss isn’t enough. We try to predict properties that will flood either through flood mapping, computer modeling, storm tracking and even through the study of history; but judging by the increasing reports of flooding taking folks by surprise, that clearly isn’t working. Often flood zone maps are out of date, water drainage systems can’t keep up with new development, levees and dams age and are not always reliable and communities celebrate adopting new flood maps that show folks “won’t need” flood insurance.
Everyone is in a flood zone: even the low to moderate flood zone risk properties, per the FEMA flood maps, can and DO flood. FEMA does the math to prove statistically between 20-25% of properties at low risk for flooding will suffer a flood. Time after time we see areas not supposed to flood in midst of a historic flood event. Texas, Tennessee, California, Washington, New York, Midwest States, Colorado—places not labeled flood prone, join the coastal areas that traditionally have been at risk like Florida, Louisiana, South Carolina and New Jersey. Is it the flood maps? Or climate change? FEMA says, anywhere it can rain, it can flood.
The lending regulations require flood insurance for those with mortgages on properties designated at “high risk” for flooding. The banks need to protect their investments; but what about owners’ protection of their own investments?
What is my personal flood loss risk? Regardless of what the mortgage lenders say is required, each owner needs to stop, think and fully absorb flood loss. It is personal because only you know your financial ability to replace out of pocket. The decision is: “What are my resources to rebuild after a flood?” You could move in with family, you could use your retirement savings, you could get volunteers and handyman contractors to lower costs, and you could get a loan from disaster assistance to begin. Knowing your path to recovery is true disaster preparedness for you and your family.
Contact your agent to discuss protection. Don’t wait until the storm approaches in a moment of desperation, but as part of your financial responsibility. Ask your agent the tough questions, dig into the flood insurance issues and look at the numbers. You could find that your family’s home, if at low risk, would cost something less than $500 a year in flood insurance to protect what you love…to assure your family’s financial future, to maintain your retirement savings stays intact.
The flood talk may be a difficult discussion, but worth its weight in peace of mind. Reach Armed Forces Insurance at: 800-495-8232 or request a quote at www.afi.org.
Article courtesy of Dolores Glass, ANFI, Wright Flood Senior Communications Specialist